Monday, June 13, 2011

Man United to follow Birmingham City on Hong Kong Exchange?

The Glazer family, the American owners of Manchester United FC, have held talks with several investment banks on a scheme to list the English Premier League champions on the Hong Kong Stock Exchange.

Bankers have reportedly advised that the listing could value the club at £1.7 billion ($2.6 billion), more than double what the Glazers paid for the club in 2005.

Birmingham City FC, recently relegated from the EPL to the second-tier English Championship, became a subsidiary of a Hong Kong Stock Exchange-listed company, Birmingham International Holdings (formerly Grandtop International Holdings Limited) in 2009, following the club's acquisition by a consortium led by Hong Kong businessman Carson Yeung.

Last month BIH raised £3.8 million (HK$49 million) by selling 6.43% of its shares through the HKSE to persons unconnected with the club. The sale reportedly diluted the stake of Yeung, the club's largest shareholder, from 24.9% to 23.3%.

According to the Financial Times, BIH's current market capitalisation is £47.65 million (HK$614.27 million).

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