Rights fights

20 September 2011 By John Foley Follow @johnsfoley

The soccer club may list in Singapore with “stapled” securities that could entrench the Glazer family’s control. But though new investors may not get the voting power they’d like, that can be reflected in the price. If the idea sounds too tricksy, would-be backers can say no.

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Manchester United may sell preference shares as part of its plans to list in Singapore, according to Reuters. Such shares would carry no votes, unlike regular equity, but would rank ahead of ordinary shares in a winding up. They might also be “stapled” to a smaller number of regular shares to create a category of stock with diluted voting rights.

The UK soccer club, bought by the Glazer family in 2005, has received regulatory approval from Singapore for the listing, and has hired banks including Credit Suisse, Morgan Stanley and JPMorgan to advise on the deal. The Glazers would retain control after the listing, Reuters said.

The Glazer family plans to use some of the funds raised to cut debt, the news reports indicate.

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