What We're Reading

Man United listing bid on Singapore Exchange approved

  • Reuters, Friday, September 16, 2011 4:07 PM

Reuters is reporting that Manchester United, in an attempt to reduce a debt estimated at nearly $500 million, has received approval from the Singapore Exchange to list $1 billion worth of non-voting shares.

Listing on the Singapore Exchange would also extend the club's influence in Asia, which with its stronger markets and huge fan base is an attractive option for expansion and growth.

The preference shares -- similar to the preferred stock offered by many companies -- would not affect ownership of the club, which has been held by the family of American entrepreneur Malcolm Glazer since 2005, but could offer a higher yield on return. Preference shares receive priority over ordinary shares for dividend payments and in the event of liquidation.

Lorraine Tan, director of Asia equity research at S&P Capital IQ, a unit of Standard & Poor's, said, "Investor interest is always going to be a question of valuation, but they are a big enough brand name, so I think they are not going to be heavily discounted like an unknown company."

Read the whole story at Reuters »

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