Tan Today Confirms he could be ready to Sell Shares in City

Tuesday 4th June 2013

" Vincent Tan has confirmed he could be ready to sell shares in Cardiff City on the Malaysian stock exchange."

The billionaire, who owns 36.1 per cent of the Bluebirds' shares and has poured millions of pounds into the club by way of loans, said the move could come by the end of this year.

The convenience store 7-Eleven, the franchise for which Tan owns in his home country, could also be listed.

Speaking in Malaysia, Tan was quoted as saying: "We will consider.

"We are looking at several options to raise money to pay the banks. I have invested so much, so now I need to raise some money. Listing is one of the options,"

"Listing is one of the options, but nothing is firm or definite yet."

Tan's comments come just over a week after first reports of the proposal surfaced in Malaysia following the Bluebirds' promotion to the Premier League

It would follow Manchester United's debut on the New York Stock Exchange last year, which raised £154.4m.

According to initial reports, the plan would be to list on the Kuala Lumpur Stock Exchange renamed Bursa Malaysian in 2004.

The initial public offering (IPO) which would see a certain number of shares sold rather than the entire club is reportedly in its early stages, with details on the "timing, size and listing venue subject to change".

Premier League football is expected to quadruple Cardiff City's revenue to about £80m next season, thanks largely to the bumper television broadcast rights deal.

Even if the Bluebirds are relegated after just one season in the top flight, the club would receive parachute payments of about £60m spread over the following four seasons.

Cardiff City's latest set of financial accounts, however, show the club made a £13.6m loss last season, bringing the total debt to £83m.

Keith Morgan, a Cardiff City supporter and director at international accountancy firm Mazars, said an IPO would be one way of Mr Tan getting a "big return" on the money he has loaned the club, which he believes to be about £60m-£70m.

"But the benefit for the club is that in order for Vincent Tan to make money that way he will have to write-off the loans and convert them into shares," Mr Morgan said.

"That would make Cardiff City much more attractive to potential investors, especially as a Premier League club.

"The problem with football clubs is there is no guaranteed income stream. Football is a very volatile income stream. In the Championship, Cardiff City's total income was £20m. In the Premier League that income goes up to £80m.

"If you get relegated, yes you do get parachute payments, but your income falls of the a cliff, say from £80m to £40m. Normally the stock exchange investors are in it for the long-haul.

"If you invested in Manchester United there is very little risk of them getting relegated and therefore losing a high proportion of their income. Whereas Cardiff City, or Swansea City, there is a very real risk."

Very interesting, you never know he might decide to sell us to another billionaire if he has enough interest from other business men, fingers crossed he will sell up and we can go back to our traditional blue kit!

Very interesting, you never know he might decide to sell us to another billionaire if he has enough interest from other business men, fingers crossed he will sell up and we can go back to our traditional blue kit!

Then again, he could decide to stay and make further investments into Cardiff City FC and keep us on the upward spiral that has occurred to date

Just an alternate thought, of course, but one I'd happily take if it means the club can prosper

Wanting the blue apart (which we would ALL like) I really don't know if people like you can actually work out the realities of what you wish for sometimes

Very interesting, you never know he might decide to sell us to another billionaire if he has enough interest from other business men, fingers crossed he will sell up and we can go back to our traditional blue kit!

We will be playing in Blue again at sometime I am absolutely convinced of that.

However, as Since '62 points out there has to be reliable sources of income for investors. That makes me wonder if VT has something else up his sleeve?

Very interesting, you never know he might decide to sell us to another billionaire if he has enough interest from other business men, fingers crossed he will sell up and we can go back to our traditional blue kit!

We will be playing in Blue again at sometime I am absolutely convinced of that.

However, as Since '62 points out there has to be reliable sources of income for investors. That makes me wonder if VT has something else up his sleeve?

Not necessarily. Investors can invest for returns in dividends etc but also for growth in share prices.

If we establish ourselves in PL then perhaps we will have a bigger price and make a profit for any investors.

The other alternative is rich investors who want to own a PL club decide to buy,.....

Interesting. Did i read and understand correctly that in order to sell the shares on the stock market before doing that the debt and loans need to be converted to equity? So does that mean this could be a sign of the debt to equity happening?

Very interesting, you never know he might decide to sell us to another billionaire if he has enough interest from other business men, fingers crossed he will sell up and we can go back to our traditional blue kit!

We will be playing in Blue again at sometime I am absolutely convinced of that.

However, as Since '62 points out there has to be reliable sources of income for investors. That makes me wonder if VT has something else up his sleeve?

Why are you so convinced of the return to blue? I'm not. Infact, the longer we stay red, the less likely it will be.

chuckle, the PR benefits for any new owner coming in would be huge, they'd be a fool not to take advantage of that

Interesting. Did i read and understand correctly that in order to sell the shares on the stock market before doing that the debt and loans need to be converted to equity? So does that mean this could be a sign of the debt to equity happening?

This has been discussed in Castleblue's post (its a sticky)

chuckle, the PR benefits for any new owner coming in would be huge, they'd be a fool not to take advantage of that

Or play the 'politicians' card of "We can't change what went on before us"

Very interesting, you never know he might decide to sell us to another billionaire if he has enough interest from other business men, fingers crossed he will sell up and we can go back to our traditional blue kit!

The next guys fav colour could be pink FFS

Very interesting, you never know he might decide to sell us to another billionaire if he has enough interest from other business men, fingers crossed he will sell up and we can go back to our traditional blue kit!

The next guys fav colour could be pink FFS

Ooh, ducky. Pleeeeeease!!

Hey, you still off to the States in August, Steve??

Very interesting, you never know he might decide to sell us to another billionaire if he has enough interest from other business men, fingers crossed he will sell up and we can go back to our traditional blue kit!

The next guys fav colour could be pink FFS

Ooh, ducky. Pleeeeeease!!

Hey, you still off to the States in August, Steve??

Yep counting down the days as well mate. Regan not only my son but my best mate as well

Very interesting, you never know he might decide to sell us to another billionaire if he has enough interest from other business men, fingers crossed he will sell up and we can go back to our traditional blue kit!

The next guys fav colour could be pink FFS

Ooh, ducky. Pleeeeeease!!

Hey, you still off to the States in August, Steve??

Yep counting down the days as well mate. Regan not only my son but my best mate as well

Mate, that relationship (friend as well as father) is the most important one you'll ever have and you should cherish it whilst he is still at home

Are you still going on the same itinary (out west to California) and did you get the Sat Nav after (I forget what you said but have a Western USA map for TomTom if any use)

Hope Mrs Nukes well, mate and you sorted out the 'appeal' on that shite decision by HM Government?

Mine not too good in recent months but we battle on and we just had notification we have 'won' our appeal (if you can ever call it a win, as it should never have been questioned FFS!) so a little bit of pressure off

Sven
I do cherish it and TBH yesterday was the first time in years i had to be a Dad and not a Friend and raise my voice at him but he needed a kick up the backside. He didn't like it but hey i have to be dad as well.
Yes we are going on the trip of a lifetime and its the west coast California one hell of a road trip. Yes hopefully got a sat nav sorted someone on here has said i can borrow his
Cath is now on her new medication and is doing as well as can be expected mate sorry to here your troubles mate but we all keep going as best we can and try to make the best of it. God bless you mate and keep going like Cath and Me

Sven
I do cherish it and TBH yesterday was the first time in years i had to be a Dad and not a Friend and raise my voice at him but he needed a kick up the backside. He didn't like it but hey i have to be dad as well.
Yes we are going on the trip of a lifetime and its the west coast California one hell of a road trip. Yes hopefully got a sat nav sorted someone on here has said i can borrow his
Cath is now on her new medication and is doing as well as can be expected mate sorry to here your troubles mate but we all keep going as best we can and try to make the best of it. God bless you mate and keep going like Cath and Me

1: Never be afraid to be a dad, mate. He will appreciate it one day and I am told he is a great kid anyway, so hopefully no real trouble for you Mind you, I understand he is deemed a lethal weapon with his hands these days! LOL

2: Just enjoy your trip and remember if you do get over to Las Vegas a trip to The Grand Canyon is something else and I can personally recommend Maverick Helicopters for the trip of a lifetime (but stay away from that glass diving board the Indians have built, as it costs a fortune and is a rip-off)

3: Good news on Cath and I'm sure my Mrs will get a little better again with the old medication. We're off to Florida in September, as she loves the place and we are experienced enough to do the quiet things away from the parks. But next year it's out to Arizona and then a drive to California to see San Francisco and do the coastal drive. Can't wait!

All the best, mate and buy the boy a pint. He'll be fine!

Sven cheers mate yes Regan a top Kid TBF and i am really proud of him and yes he has lethal Hands and that is an understatement.
Going to Las Vegas as well and a helicopter ride over hoover Damn and into the Canyon and a raft ride on the Colorado then up to the Skywalk all part of the price. Hope your Mrs will be OK and enjoy your trip to Florida i have been there and love it.
See you in the Prem my Friend and i promise i will buy you a pint next season

Sven cheers mate yes Regan a top Kid TBF and i am really proud of him and yes he has lethal Hands and that is an understatement.
Going to Las Vegas as well and a helicopter ride over hoover Damn and into the Canyon and a raft ride on the Colorado then up to the Skywalk all part of the price. Hope your Mrs will be OK and enjoy your trip to Florida i have been there and love it.
See you in the Prem my Friend and i promise i will buy you a pint next season

That's an amazing trip, mate and maybe you'll get to meet one of your brother 'Chiefs' for real!

That pint would be good

Talk to you soon enough...IN THE PREM!!