Man Utd lowers stock float value
Published: 10th Aug 2012 01:23:59
Manchester United has been forced to cut the value of its imminent share flotation in New York.
The football club said it would sell shares at $14 each, below the $16-$20 range that it announced just weeks ago.
It is selling shares representing 10% of the club, which will raise $233m (£150m) to pay off some debt, below the $333m hoped for.
The lowering of the debut share price suggests that it could not find buyers at those higher prices.
The business has been controlled since 2005 by billionaire US sports investors the Glazer family, who paid £800m for the club, which this sale now values at double that.
They also own the Tampa Bay Buccaneers American football team.
The shares will begin trading in New York on Friday under the ticker name Manu.
The club currently has £437m of debt and £70m in cash.
Earlier this month, the Manchester United Supporters Trust (MUST), called for a boycott of the club's sponsors in protest at the planned share issue.
It said this was intended to send "a loud and clear message to the Glazer family and club sponsors that, without the support and purchasing power of the fans, the global strength of the Manchester United brand doesn't actually exist".
The club, which has one of the largest fan bases of any Premier League team - reaching into the hundreds of millions, was recently called the most valuable in sport and worth $2.23bn, according to Forbes magazine.
Sir Alex Ferguson, the manager, recently denied speculation that he stands to benefit financially from the imminent share flotation, after reports that club employees would benefit from a share incentive scheme.
"There is not a single grain of truth in this allegation," he said in a statement.
The Premier League giant came second last season and has won a record 19 titles.
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Harvard CitationBBC News, 2012. Man Utd lowers stock float value [Online] (Updated 10th Aug 2012)
Available at: http://www.ukwirednews.com/news/1445465/Man-Utd-lowers-stock-float-value [Accessed 1st Sep 2014]
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With the doors to its brand new £1million training centre officially open, one of the UK's leading apprentice training providers, Bristol based S&B Automotive Academy, is showcasing its world-class facilities by launching a series of foreign student exchanges for the first time in its 41-year history. To get a flavour of what life is like as an apprentice in the UK, the Academy hosted 16 apprentice engineers and bus drivers from the G9 Automotive College in Hamburg, Germany, as part of a Europe-wide vocational training initiative called the ‘Leonardo Programme’ with support from the European Social Fund. In a reciprocal arrangement, S&B will be sending nine apprentices to Germany during February 2012 so that they can get an appreciation of life in the automotive industry on the Continent. A further three German exchange groups are being planned for next year. Designed to assist the development of vocational skills and training across Europe, including work placements for trainees, the Leonardo Programme has a budget of €1.75bn, which is helping to encourage UK organisations to work with their counterparts abroad. In what is expected to be another challenging year for employers in the UK automotive sector, S&B’s Chief Executive, Jon Winter, claims that the exchange initiative will bring many benefits to the Academy and its apprentices: “In a world of global automotive brands, it’s important for our learners to understand the international context of the industry they have chosen to make their career. This new exchange programme will enable apprentices and Academy staff alike to achieve a better understanding of the challenges and opportunities within the automotive arena in Europe. With the Academy’s influence also extending to the USA and Asia, there’s every possibility that this initiative could move further afield in the future.” Continued Winter: “The need for skilled technicians across the world is on the increase and we actively encourage our apprentices to look at broader horizons during their training. Many of them have already learned the phrase ‘Vorsprung durch Gelehrtheit’, quite simply, ‘Advancement through learning.” In the 2010/11 academic year, S&B doubled the number of successful Apprenticeships over the previous year with some 350 apprentices graduating from the Academy. At the same time, achievement levels reached an all-time high with an overall success rate of 85%. For those learners on the Advanced Apprenticeship three-year programme, success rates were even higher, at over 98%. PHOTO CAPTION: As part of their exchange visit, S&B Automotive Academy arranged for the German apprentices to visit Hampshire bus operator, Bluestar, at its Barton Park depot. The students are pictured with S&B’s Andy West (3rd right) and Steve Prewett, Bluestar’s Area Engineering Manager (2nd right). Ends http://www.sandbaa.com