Manchester United set for Singapore flotation

Manchester United are to sell off a stake in the club in Singapore in order to pay off a portion of their debts and further develop their business in Asia, Press Association Sport reported.

The Premier League champions currently have debts of more than £500 million but they could hope to clear a large proportion of that by floating on the Singapore Stock Exchange.

The club has lodged a submission to launch an Initial Public Offering (IPO), a flotation, with the intention of being listed on the stock exchange by the end of 2011.

The submission process will take between four and 12 weeks, followed by a further fortnight of administrative proceedings which will see United floating in the fourth quarter of the year.

United already have 192 million supporters in Asia, out of a worldwide total of 333 million, and the flotation means they can develop commercial links and increase their fanbase.

In contrast to much of the western world which is in a deep recession, Asia’s economy is continuing to grow, rebounding quickly after a short slump.

It is not yet certain what proportion will be floated or how much the Glazer family, United’s owners, are hoping to raise although some reports are estimating between £400m and £600m.

The Manchester United Supporters Trust has reacted with suspicion to the possible floatation.

Chief executive Duncan Drasdo said: “While on the surface fans should welcome any reduction in the unsustainable debt burden on the club, if this eastern promise from the Glazers seems too good to be true, it’s because it probably is.

“The share sale will be in the Glazers’ interests – to pay down their debt – not the club’s.

“What we wish to see is a full sale to progressive owners who are interested in investing in the club’s future so we can compete with Europe’s finest, currently Barcelona. Ultimately, our ambition is for shared fan ownership of a better United.

“The danger is that a partial flotation will provide a poisoned pill to any such progressive potential owners.

“And by reducing the Glazers’ personal debt we will continue to be saddled with these absentee landlords.

“To any United fans considering buying shares at the Glazers’ initial offer price – buyer beware.”