MUFC Announce IPO Share Prices

Having read some more of the document.


The Glazers plan to raise a NET figure of $141 million from the sale of class A shares to the public.

The debt (bonds) are split in 2 UK bonds and US bonds.

They plan to spend £73 million ($116.8 million) on the US bonds.

And £8.3 million ($13.3 million) on the UK bonds

So thats a total of $130 million of the $141 accounted for.

The Diva

All that's correct.

They are using the Class A share proceeds to pay back the debt.

The rest of the money is coming from their sale of the class B ones. Those shares are much more valuable as the Glazers are relinquishing some of the club with them. Due to that reason the Glazers won't be using the proceeds from them to pay off their debt. It's going in their pockets.

This is what makes people like me angry and yet there are still people who don't get it.

Where does it state they are selling these Class B shares Stretford?

It's on the second page that has red background.

Quote

Following this offering, we will have two classes of ordinary shares outstanding: Class A ordinary shares and Class B ordinary shares. The rights of the holders of our Class A ordinary shares and our Class B ordinary shares are identical, except with respect to voting and conversion. Each Class A ordinary share is entitled to one vote per share and is not convertible into any other shares of our capital stock. Each Class B ordinary share is entitled to 10 votes per share and is convertible into one Class A ordinary share at any time. In addition, our Class B ordinary shares will automatically convert into shares of our Class A ordinary shares upon certain transfers and other events, including upon the date when holders of all Class B ordinary shares cease to hold Class B ordinary shares representing, in the aggregate, at least 10% of the total number of Class A and Class B ordinary shares outstanding. For special resolutions (which are required for certain important matters including mergers and changes to our governing documents), which require the vote of two-thirds of the votes cast, at any time that Class B ordinary shares remain outstanding, the voting power permitted to be exercised by the holders of the Class B ordinary shares will be weighted such that the Class B ordinary shares shall represent, in the aggregate, 67% of the voting power of all shareholders. See "Description of Share Capital — Ordinary Shares."

From that paragraph I dont see it saying that they will sell the B shares.

From what I have read these shares are going to the Glazers and "senior management"

In a float these people get these shares for free and so no money will be going into the club from these shares.

The other point in the paragraph is that these shares can be converted to A shares if they want.

Of course they are. Otherwise where is the rest of the money coming from then?

I think it's just been cleverly worded.

My understanding is they are relinquishing a small amount of the club in ' B shares' too but not enough to make a real difference. They will still hold the majority of shares by far. And they will pocket the proceeds from thee B shares.

I stand to be corrected though. That was what was explained to me.

Well whatever they are doing with the B shares.

It isnt in that document.

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.

Ok so having seen that half of this money raised will go into the glazers pockets I will not be buying any shares.

Just when I thought the glazers couldn't get any worse they go and do this.

Perfect opportunity to get fans inside and MASSIVLEY reduce debt but they choose to pocket over half of the money this could raise.

Seriously I do wonder how people can defend them sometimes.

Just been a report on skynews about the whole thing, expert reckons it will save about £5m a year in interest payments if successful, and half the money to pay off debt, the other half to the glazers.