S$6.81-SGXS.SI
Manchester United will be listed on the SGX, and as early as mid October: approval within 4 weeks from the application on Aug18, instead of the usual 12-week process.
And this is only because SGX allows dual-share structure (as does the US since the 1920s): one with voting rights and one without.
A source was quoted as saying “in a game like soccer, having control makes decision making on issues like transfers a lot easier”.
We would imagine all businesses having similar justification for special treatment to ensure ”long term decision making and strategic planning”.
Not surprisingly, many will have concerns over corporate governance, eg the CEO of Calpers, the big Californian pension fund calls it a “corruption of the governance system”. (US companies with 2 classes of stocks include News Corp, Google, LinkedIn.)
Also, many will recall Singapore doing away with 2 tranches of stocks in Singapore, local and foreign for the DBS, OUB, OCBC, UOB, SPH, SIA in the 90s.
Man U is controlled by the Glazer family, which bought the football club in 2005.
The Man U coup (over HK) is not expected to have a sustained impact on SGX’s share price. We remain Neutral.
No comments:
Post a Comment