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Author: Alan LittleDate: 2021-10-07

Manchester United (MANU) -15% after Glazers announce share sale

Manchester United (MANU), one of the few publicly traded sports teams, traded 15% lower in New York on Wednesday after the Glazers announced a sale of 9.5 million shares.

Manchester United (MANU) shares cratered 15% on Wednesday after the Premier League football club’s joint owners said that they would sell a stake in the club.

Team owners Kevin and Edward S. Glazer, who completed a leveraged buyout to take control of Manchester United back in 2005, announced in midweek that 9.5 million shares would be put up for sale.

The latest move will see the Glazers’ combined stake fall from 75% to 69%, but it won’t have any effect on their ownership and none of the proceeds from the sale will be invested in the club.

Bloomberg reported that a spokesman for the Glazers said: “The sale is a personal matter for Edward and Kevin.”

It should not come as a great surprise to investors though as Avram Glazer sold a $95m (£70m) stake in Manchester United earlier this year.

Co-chairman Joel Glazer also stated last month that fans would get an opportunity to buy shares in the club after the negative reaction and protests that followed Manchester United’s failed attempt to join a proposed ‘Super League’ featuring top European clubs.

It was announced in midweek that Bank of America (BAC) would be the lead underwriter for the share sale.

Manchester United noted in a statement that shares of common stock would be made available on the New York Stock Exchange in due course.

MANU shares traded down after the announcement on Wednesday, with the 14.37% reversal by mid-morning meaning that shares were changing hands for around $16.80.

Elsewhere, food manufacturing company Kellogg (K) fell 0.5% to $63.68 after an employee strike at its cereal plants in the US over wages and benefits entered a second day.

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