Acquisition of Shares and Gaining Control
Following the Manchester United board's search for new investors, the Glazers purchased their first tranche of Manchester United shares on 2 March 2003, spending around £9 million on a 2.9% stake. On 26 September 2003, it was reported that he had increased his share to 3.17%, taking his shareholding above the 3% threshold that required him to inform the club's management. There had already been considerable speculation about the possibility of a takeover of the club, either by Glazer or by one of several other interested parties. By 20 October, he had increased his shareholding to 8.93%, and on 29 November it was reported that he owned around 15% of the club and had met David Gill, its chief executive, to discuss his intentions. On 12 February 2004, Glazer increased his stake in the club to 16.31% and the following day's Financial Times reported that he had instructed Commerzbank to explore a takeover bid. The club's share price increased by 5% that day, valuing the club at a total of £741 million. Glazer increased his shareholding to over 19% the following June, although he was still not the largest shareholder. His shareholding continued to increase, nearing 30% by October 2004. Upon reaching 30%, Glazer would have to launch a formal takeover bid.
On 12 May 2005, Glazer reached an agreement with shareholders J. P. McManus and John Magnier to purchase their 28.7% stake in the team, giving him a controlling stake with just under 57% of the team's shares. He then managed to secure the stake of the third largest stakeholder, Scottish mining entrepreneur Harry Dobson, taking his share total to 62% of the club. Just hours later, Glazer had bought a further 9.8% stake taking his total ownership to 71.8%.
On 16 May 2005, Glazer took his shareholding in Manchester United to 75%, allowing him to end the club's public limited company (PLC) status and delist it from the London Stock Exchange, which he did on 22 June. On 14 June 2005, Glazer successfully increased his share in the club to 97.3%, sufficient for full control. On 28 June, he increased his share to 98%, enough for a compulsory buyout of all remaining shareholders. The final valuation of the club was almost £800 million (approximately $1.5 billion at the exchange rate at the time).
Read more about this topic: Glazer Ownership Of Manchester United
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