US tycoon Malcolm Glazer plans to delist Manchester United Plc as early as June 22 as part of his 790 million pound ($1.5 billion) takeover of the British soccer giants, his bankers said on Monday.
In a statement, investment bank Rothschild said Glazer planned to apply to UK authorities to cancel Manchester United Plc's listing from the London Stock Exchange, on June 22 "or as soon thereafter as is practicable."
The move brings to an end Glazer's two year battle to acquire the 15-times English soccer champions and returns the 127 year old club into private hands after 14 years on the stock exchange.
The news came as Glazer posted official details of his 300 pence a share offer to United's shareholders, kicking off a timetable for the US financier to close his acquisition of the club nicknamed "The Red Devils."
But the widely anticipated offer document contained no details of Glazer's business plans for United. Fans had hoped for more information on player investment or plans to increase profits by capitalising on United's brand both domestically and abroad. But the details were sorely lacking.
"It was deliberately technical," said one source close to the deal. "They thought about using it as a PR (public relations) document but decided against it."
"They just wanted the offer process to be finished first," the source added.
Glazer seized control of Manchester United earlier this month by buying a 28.7 percent stake from the club's biggest shareholder, Cubic Expression, an investment vehicle for Irish racehorse magnates John Magnier and J P McManus.
Over the following days, Glazer's advisers snapped up more shares until they reached a key 75 percent plus threshold, giving the American full control of the club. He now owns 76.2 percent.
HEDGE FUNDS
In his offer document, Glazer admitted for the first time that his bid will be financed in part by three large US hedge funds; Citadel Horizon, Perry Capital and Och Ziff, who between them have lent Glazer 275 million pounds of debt in return for preferred securities in United.
He did not disclose the amount of interest payable on the debt which is in the form of so-called pay-in-kind (PIK) notes.
Investors in PIK notes get paid higher yields than other types of debt.
The tycoon also provided a detailed break down of the 265 million pounds of debt that will be placed directly on United's balance sheet via four different facilities, each with increasing rates of interest over the London Interbank Offered Rate (LIBOR).
Glazer, who is acquiring United through his Red Football acquisition vehicle, has also secured an 18.9 million pound bridging loan, which the source said was borrowed against the amount of cash United has on its books.
In addition, the club has put in place a revolving credit facility of 50 million pounds for working capital and a capital expenditure line of 40 million pounds, the document said.
Glazer's takeover has infuriated United's fans who fear the financier will hike ticket prices and cut back on player investment to pay back the hefty loans he used to buy the club.
Glazer sidestepped those issues in his offer document on Monday saying only that Red Football was "... committed to the success of Manchester United Football Club, the team and all other aspects of the Manchester United business."
"Red wants to work with current management, players and supporters to ensure that the significant successes enjoyed by Manchester United, both on and off the pitch, continue," the statement said.
United's Chief Executive, David Gill, has yet to say whether he will stay with the club, while sources say United's manager Alex Ferguson plans to continue.
Shareholders will be able to sell their shares to Glazer until 1400 GMT on June 13.
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