Tuesday, September 20, 2011
Updated: September 21, 2:09 PM ET
Report: Man U IPO delayed
LONDON -- Manchester United put on hold its $1 billion Singapore stock market offering because of volatile global markets, a person familiar with the situation told The Associated Press.
The person, speaking on condition of anonymity because the club is not discussing its financial plans publicly, said United's American owners are waiting for market conditions to improve before going ahead with the listing. Approval for the initial public offering already had been approved by Singapore's stock exchange.
The Glazer family, which also owns the Tampa Bay Buccaneers, plans to remain in control of United by making only 25 percent to 30 percent of the club available. The family wants to raise $1 billion to help to cut debts, which were $747 million on June 30.
If the Premier League champions do not list by the end of the year they will have to seek an extension. United's planned listing values the club at far more than the $1.9 billion valuation by Forbes magazine, which has ranked it as soccer's most valuable team the last seven years. The club was bought by the Glazers for $1.4 billion in 2005.
The wider economic instability has made the Glazers wary. Markets have been shaken by the possibility of Greece's debt default, Italy's debt downgrade and the International Monetary Fund's warning that the global economy is growing far slower than anticipated.