Irish duo net €130m in United share sell-off
The deal means Mr Glazer is certain to seize control of United, despite opposition from management and fans.
Mr Glazer struck a deal to buy the 28.7% stake held by Mr Magnier and Mr McManus yesterday morning, offering them 440 cents for every share they own.
The offer for United values the club at €1.15bn and the stake held by Cubic Expression, the company that held the shares owned by the Irish duo, at €330m.
Stripping out what they paid over four years to build up their holding, they will share the €130m profit.
It also emerged last night that more shareholders had sold out to Mr Glazer, the owner of the Tampa Bay Buccaneers.
Harry Dobson, a Scottish businessman with a 6.5% stake in the club, sold his holding and it is understood several other investors have also exited United.
Overall, Mr Glazer’s holding stands at around 70%, just 5% short of the target he needs to delist the club from the stock market in London and install his own management team.
United’s board and fans remain vehemently opposed to the takeover. The board said the bid would leave the club with too much debt on its books, limiting its ability to buy new players.
Though the club’s fans vowed to fight on, stock market analysts believed that the game had ended with a clear victory for Mr Glazer.
“The battle’s over. The outcome always depended on the Irish and Glazer’s made them an offer no one else could possibly have matched,” said Henk Potts of Barclays Private Clients.
Jules Spencer, chairman of the Independent Manchester United Supporters Association, said: “If this is to be the end then we will go down kicking and screaming. And if he [Glazer] does get control then we will do what we said, which is up sticks and form a new club which will continue the traditions and heritage and the legacy of 125 years.”
Sean Bones, of Shareholders United, which represents small shareholders, said his group was moving ahead with plans to buy enough shares to block the takeover. He compared Mr Glazer’s plans to load debt, estimated at €440m, on United to what happened at Leeds - a club which went bankrupt two years ago.
“It is up to every supporter to stand together and play their part to protect and defend their club.”
Mr Glazer, 76, has a personal wealth of €1bn and is expected to ramp up United’s commercial activities to capitalise on its 10 million fans worldwide.
United’s revenues fell last year for the first time in eight years, while profit dropped 35%, leaving Mr Glazer with much to do when he gains control.
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