Manchester United Plc (NYSE:MANU) shares found minor respite in Wednesday’s early premarket deals, after yesterday’s rout axed more than $700 million from the football club’s market value.
For context, the Glazer family bought Manchester United for $790 million back in 2005.
The collapse in the club’s share price followed media reports over the weekend which claimed that the Florida-based Glazer family, the majority owners of the club, intend to withdraw from the protracted sales process and retain control of the company.
According to an article, in the Mail, the sale process has failed to meet the family’s lofty expectations - as they reportedly believe the business should be worth between $8 billion and $10 billion, and, could be sold for a higher price in 2025.
Having plummeted on the New York Stock Exchange, the price of United’s minority and subordinate equity gives the whole company an implied market value of a mere $3.15 billion.
Whereas the takeover offer from Sheikh Jassim, a Qatar banker with connections to the state’s royal family, was reportedly pitched at a reported £5.5 billion ($6.9 billion) to buy 100% of the company.
A separate offer from Sir Jim Ratcliffe’s INEOS sort to buy a controlling portion of the Glazer-held equity, and, whilst lower in cash terms implied a greater overall paper-valuation of the whole club.
There has been no official communications from Manchester United or the Glazer family, to investors or the wider public, despite Tuesday’s sharp share sell-off.
Little is clear at present, other than the market and Manchester United’s potential buyers believe the club is worth substantially less than the reported Glazer asking price.
In New York this morning, Manchester United shares stabilized somewhat – up 64 cents, 3.3%, from last night's close priced today at $19.99 each.