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United confirm share plans
Published : 30 Jul 2012 23:17:01Rss feed
The Glazer family have issued a notice of intent to sell just over 10 per cent of Manchester United on the New York Stock Exchange.
An announcement was made this evening and confirms an intention to raise around 300million US dollars.
However, there does appear to have been a significant shift in how the proceeds will be used. Previously, it was suggested that the entire sum would be used to pay off United's massive debt, that currently stands at over £400million.
However, the prospectus released to accompany Monday night's announcement indicates only half the money will be used in that way, with the rest going directly to the family.
If that proves to be the case it will provoke fury among the United support, who have already seen vast amounts of cash disappear in various charges following the Glazer family takeover in 2005.
The news comes on the day United confirmed a massive new shirt sponsorship deal with US car giant Chevrolet, which takes effect from 2014.
However, critics will also point to the fact the club are yet to post end-of-year accounts which show the exact amount bowing out of the Champions League group stage cost them.
"Manchester United today commenced its initial public offering of 16,666,667 Class A Ordinary Shares," said a statement issued from New York by Sard Verbinnen & Co, the public relations firm enlisted by United for the IPO.
"Manchester United is offering 8,333,334 Class A Ordinary Shares and the selling shareholder is offering 8,333,333 Class A Ordinary Shares.
"The underwriters have an option to purchase up to an additional 2,500,000 Class A Ordinary Shares from the selling shareholder. The Class A Ordinary Shares will be listed on the New York Stock Exchange and will trade under the symbol "MANU.""
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