Manchester United co-chairman Avram Glazer plans to sell five million Class A shares, the English soccer club said late on Thursday, in a stake sale that could be worth around $100 million.
New York-listed shares in United, controlled by the American Glazer family, closed at $20.13 on Thursday. The offering, which has not yet been priced and will not result in proceeds for the company, is expected to close on March 16, the club said.
The shares were down 7% at $18.81 before the open on Friday.
After the share sale, Avram Glazer will no longer own any Class A shares in the company, reducing his total voting power to 13.39% from 16.85%, a filing with the U.S. Securities and Exchange Commission showed on Friday.
He will still own more than 10% of the outstanding shares in the club following the sale but the combined Glazer’s ownership will fall to 74.9% from 78%.
The Glazers control the company via B shares that have 10 times the voting power.
Six descendants of the late Malcolm Glazer, who took over Manchester United in 2005, owned 7.75% of Class A shares in the company and all of its Class B shares, as of December 2020, the filing showed.