Manchester United press ahead with 600m share offer

Manchester United is pressing ahead with plans to float shares on the Singapore Stock Exchange to reduce its debts and develop its business in the Far East, with a listing expected before the end of the year. The club currently has debts of 500m which have saddled it with annual repayments of 45m, but hopes to clear its liabilities through the flotation. The M.E.N understands the club's American owners, the Glazer family, are planning to sell up to 30 per cent of their stake to raise around 600m. Any surplus after paying down the debts could be used to give United more fire power to overcome rivals such as Manchester City in the transfer market. The club has lodged a preliminary application to launch the initial public offering or flotation in the fourth quarter of 2011. The submission process will take between four and 12 weeks, followed by a further fortnight of administrative proceedings and investor roadshows. United has 192 million supporters in Asia, out of a worldwide total of 333 million, and the flotation means the club will be able to develop its commercial links and sponsorships and increase its fan base in the region. The Red Devils have fan clubs in Thailand, South Korea and Singapore, where there is also a United-themed restaurant. A playing tour of the region was undertaken in June and took in Singapore. In contrast to much of the western world which is in a deep recession, Asia's markets are booming. Singapore Stock Exchange has been selected ahead of its Hong Kong counterpart for the listing and senior officials from United have travelled to the country for discussions ahead of the IPO. Manchester United were not commenting but a Far East source close to the process told the M.E.N: "An application has been submitted to the Singapore Stock Exchange. It ! has been decided to list shares in Asia because of the club's huge fan base there. It is also an important region commercially, and the club is looking to the region for further growth. "The IPO will help pay down debt and further growth the Asia business. It's at an early stage." Credit Suisse is co-ordinating the IPO. Duncan Drasdo, chief executive of the Manchester United Supporters' Trust, 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."

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