Jim Ratcliffe’s bid for up to a 25% stake in Manchester United Plc will give the English Premier League football club an equity value of roughly £4.4 billion ($5.5 billion).
The UK billionaire has offered about $33 a share for the stake in the famous old football club, people familiar with the matter said. That represents a 79% premium to the stock’s Thursday closing price in New York.
The US Glazer family, which owns 69% of Manchester United, has agreed to sell a quarter of its holding as part of the deal, according to the people, who asked not to be identified because the matter is private.
Ratcliffe had been competing to invest in Manchester United against a Qatari group led by Sheikh Jassim Bin Hamad J.J. Al Thani. The Qataris ultimately withdrew an offer for a full takeover, Bloomberg News reported previously.
Minority shareholders in Manchester United — which include the likes of Lindsell Train and Ariel Investments — will now decide whether to accept Ratcliffe’s offer. Sky News reported the price earlier on Friday.
Those working on the deal with Ratcliffe are hoping to get it done before next Thursday’s Thanksgiving holiday in the US, the people said. The deal would value Manchester United at more than £5 billion including debt.
Representatives for Ratcliffe and Manchester United declined to comment.
An agreement will bring the curtain down on more than a year of uncertainty over the ownership situation at Manchester United. Bloomberg News first reported in August 2022 that the Glazer family would consider selling a minority stake in the team, and in October this year that Ratcliffe had emerged as the front-runner. Ratcliffe had earlier restructured an offer for Manchester United to address concerns from minority holders about being excluded from any deal.
John Yetimoglu at Infinitum Partners, another minority shareholder in Manchester United, told Bloomberg News this month that Ratcliffe would need to tender for shares at $35 to $40 apiece to get the backing of shareholders.
“I will oppose anything that gives the majority Glazers a materially better deal than minority investors,” Eminence Capital founder Ricky Sandler previously told Bloomberg. “That is for sure.”
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