That’s laughable and entirely not achievable. There are currently 163,062,000 shares outstanding in the club, each with the same nominal value. If the rumour that SJ has bid 38 USD for 100% of the shares is to believed, then the maths say he is bidding just under 6.2bn USD for the entirety of the club, from which the Glazers would get 69% plus their A class holding.
Club Sale | It’s done!
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Train wreck of a thread.
Not true and a huge misconception that I made too until I spoke to financial expert, they the glazers want more fir their B shares than the minority A class shares because they have the controlling vote on the board due to the 10 times shares ratio, if they want to sell 43 acres that surround the club which is owned by the club they can do this and nobody can do anything about it, no minority share holder, no fan nobody, they could sell the land for £100m and then continue to take dividends to relinquish control of the club they want a minimum of $6bn after the debt has been paid and the additional amount of $262m out of the $1.9bm from their 4.3% of the A class shares. I believed exactly the same as you do now for 4 weeks until someone showed me something completely different. Forbes recently valued United at $6bn that doesn’t mean the Glazers will sell their controlling stake in the club for that amount. If you look at the brief today it states clearly $38 per share, after debt and enterprise fees are paid, these enterprise fees are the financial compensation agreed in an NDA to compensate the Glazers for relinquishing controlling power in the club. I’ll timestamp and we’ll come back to this after the details leak of the sale, an awful lot of united fans are going to be shocked at just how Truly F…. greedy they are ?
Imagine if SJ isn’t even a real person, and his images are all created by AI and this is all one sick joke.
I realise I have yet to see an actual video of Jason. The man is real right?!
I realise I have yet to see an actual video of Jason. The man is real right?!
Dubai Dana White, Bahrain Bruno, Sheikh Derpy and big daddy. A formidable crew.
Anybody else think SJ looks like buzz lightyear?
Wow it took 1886 pages before someone said this for the very first time
Any breaking news tonight on Jassim's feelings?
I can only sense the sarcasm that this has been uttered hundreds of time before my formal touchdown to this thread.
Feels it in his fingers. Rumours on twitter about his toes.
Takeover is all around me, and so the muppeting grows…
Sorry, they can’t sell for a premium over the other shares. a) because they have the same nominal value, voting rights don’t matter, and b) that would disadvantage the A class shareholders which is why they are threatening to sue. You are right that they can do whatever they like whilst they are in control, including selling the surrounding area, but even if they do that - when they eventually sell they will still have to split the proceeds evenly across all shareholders.
I’ve not seen a video of Jason either, but I don’t think he’s involved
He's got quite the back catalogue of films tbh.
We've just signed him.. Course he's involved.
All the bids are for corporate value, so Glazers will get only 69% of it.
Also, dividends go to all shareholders, and there is no difference between types A and B when it comes to the dividend.
You seem to be basing this off of a specific jurisdiction's laws, pray tell which jurisdiction you are referring to? In the U.S., for example, you absolutely can make a tender for just the Class B shares and not the Class A shares. All shares have the same nominal (I assume you mean par) value...but the difference in voting right or any other preference (right to nominate a % of the directors, a liquidation preference) all justify a premium over common stock.
Your missing the point all shares will be offered the same enterprise value but only the Glazer names are on the deeds to the club, land and property documents of the club. In other words only if they say yes can the club be sold and for them to say yes they want a huge financial incentive, it’s really that simple.
Their argument is very simple, collectively we want $6bn after debt has been paid to relinquish control, some of that $6bn will be the same made up of 113m Class B Shares and 6.9m Class A Shares,(Probably about $4.7bn) however the shortfall needs to be paid into our cayman bank accounts because they are losing future commercial and broadcasting revenue which are currently signed in our names.
All future contracts, all deeds including land registry are in a Glazers name probably Joel or Avram and therefore this is why they shouldn’t be paid exactly the same per share as minority share holder,
Tom Bloggs who wins 12,900 class A shares can not have his name on the property deeds or recurring broadcasting contracts. Therefore we want a financial premium to release control and the keys to the club. This will be paid as a separate line payment.
Their argument is pay us an additional financial settlement over and above the share price for us to forfeit the future opportunities of the club which we currently hold all the keys too, you want the keys pay us the $6bn after the debt has been paid and then we will give you the keys.
All this will soon unfold and so much of the reporting regarding the financials are inaccurate as you will see. This is not a typical M and A deal due to the 69/31 split.
Rather than respond wait and we will create a whole new thread on the sale when and if it goes through.
Ask the hedge funds and Soros if they agree with you?
Which laws actually apply here? US, UK or Cayman Islands? Or are they international laws as well?
My skepticism earlier was largely based on what you have said above. I do not understand how Class A shareholders can reasonably expect equal value for their shares. The idea they would launch a legal challenge to prevent a sale on that basis seems ridiculous.
Tbh the first question I would be asking them is "You understood what you were buying, right?"
Most of these hedge funds paid $14-18 when they bought their shares, they are going to be absolutely delighted by a $20 increase per share, they do not run the day to day running of the club.
The club is still not sold guess why? The Glazers are the only people who can say yes or. No and to say yes they want a premium on top of their agreed share price to relinquish control.
Now of course if they accept a bid it can not be detrimental like SJR bid was to the minority shareholders or they would face serious legal challenges
But for the last time the only people that can decide whether the club is going to be sold is the Glazers and they want $6bn after the debt is paid, if we are still on this thread in 2 months it means they’ve said no because they didn’t get the $6bn or very close to it.
The only scenario they get above $20 is through a full sale with a premium offer for 100% like Qatar. If the Glazers decided to stay, sold to a new minority or for arguments sake accepted INEOS offer, those shares would be down below $14. There is zero chance these hedge funds would be able to shift their volume. It would probably tank the stock down to single figures in the space of a few days
I totally agree but if the cub is sold to SJ the, the minority shareholders would receive a huge windfall especially if the $38 is agreed as a fair trade quote befire delisting the club. There are 50m minority shares and at $38 each that is an additional bill of $1.9bn which would probably take at least 3-4 months to do after initial sale agreement.
Welcome to the nut house
I still don't see how if Ratcliffe buys 51% of the club for a figure that values it at £5.5bn, how that would cause the price of Class A shares to plummet. Not in the immediate aftermath anyway and even longer term, they would fluctuate depending on the clubs performances on and off the field as they always have.
What constitutes something being detrimental? Causing the value of their shares to fall below the purchase price?
I get the hedgies would be furious if the Glazers creamed off all the premium from Ratcliffe but would the main issue legally be that Ratcliffe retain the class B shares' voting power when that shouldn't be possible because Ratcliffe is not part of the family.
I am sure a structure exists where that can be solved but then it can be challenged in court. All in all, hopefully Qatar pay the minimum amount possible to these leeches.
I am sure a structure exists where that can be solved but then it can be challenged in court. All in all, hopefully Qatar pay the minimum amount possible to these leeches.
The share piece is literally only at $25 because the market thinks that Jassim will win and buy everyone's shares at a premium. If not they will probably halve in value.
So I guess that would be the basis of their legal challenge. But why would the price plummet in the event of Ineos winning the bid?
How did the market react last year when Ratcliffe first made clear he would make a bid for the club?
I'll apologise in advance if you're banging your head against a wall, I'm just not seeing the logic in it but maybe that's the issue, the markets don't follow logic.
Ok very simply, buying 51% of controlling shares means all of the Glazers would receive a windfall now, some, more than others and Joel and Avram would receive potentially more in 3 to 4 years.
All of the minority share holders would receive no windfall but expect to keep their shares and have no option to sell at a premium price that they would have been guaranteed by Sheikh Jassim because he has guaranteed that his 92 Foundation will but all 100% of the club and would offer $38 to all shareholders, that’s now part of his 5th bid.
If SJR wins, the shares would immediately plummet as the market would have no confidence in him plus Joel and Avram restoring the club to former glories, meaning the current $24 share price would probably drop to $16 and large hedge funds like Lindsell train LTD and Ariel investments own about 19 million shares between them. So imagine being told you could have had $722m if we had signed with Qatar but instead because we preferred SJR bid because Joel and Avram stay in the board and the three Amigas will run the club into the ground, so when they are looking to sell their shares in 18 months they are now worth $14 per share they are now worth $266m, you can rest assured that these two large companies will vehemently object.
Because one outcome Qatar pays 38 a share to buy them off everyone
The other outcome Jim doesn't buy the A class at all, so they will plummet due to no chance of a buyout
I can't remember the exact timeline but back in November when the Glazers announced they were exploring the possibility of a sale and Ratcliffe was the first major player to make his intentions public, how did they market react?
I'd argue the biggest factor in the share price is the Glazers leaving. More so than either bidder.
Thanks for explaining this in layman terms. I was too confused to even try and understand.
Well no because the public shares are worth more in the event of a Qatar takeover as they intend to purchase them at a premium. Ratcliffe isn't interested in them. Hence why he's got himself in trouble by ignoring the class A shareholders.
Glad to help the whole saga is just never ending and let’s hope the Goblins are gone by end of July, otherwise they are probably staying.
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