The board of Manchester United Plc (NYSE: MANU) is preparing to meet in the upcoming days to discuss buyout offers, according to a Bloomberg article. Sources mentioned in this report suggest that INEOS chief, Sir Jim Ratcliffe, is the leading contender.
Ratcliffe is currently discussing potential deal structures with the club’s primary owners, the Glazer family of Florida, along with his advisors. Based on the information from individuals familiar with the situation, the current discussions have been influenced by recent modifications in Ratcliffe’s strategy.
Initially, Ratcliffe proposed to purchase the 69% stake held by the Glazers to acquire the club. More recently, however, he has considered buying a 25% stake, sourced from both third-party investors and a smaller portion of the Glazers’ shares. Some minority shareholders criticized this proposal for potentially sidelining equity holders, while certain members of the Glazer family hesitated to sell, predicting that football’s commercial worth would continue to grow.
The report indicates that Ratcliffe might secure a 25% initial stake in Manchester United, valuing the club at over £5 billion ($6.1 billion). Bloomberg’s sources also shared that the Glazers currently find Ratcliffe’s proposal for a minority stake more appealing than a complete buyout offer from a Qatari group.
However, the situation remains dynamic. The Qatari group, potentially led by businessman Sheikh Jassim bin Hamad Al Thani, may still up their bid. This Qatari bid, which aims to buy the club’s full equity, would likely benefit public shareholders more than Ratcliffe’s offer.
Earlier this week, several UK and Qatari media outlets reported that a Qatari takeover seemed imminent, which resulted in a 5% surge in Manchester United’s stock value.
The ongoing sale discussions have lasted almost a year, with minimal public comment from either Manchester United or the Glazer family. Moreover, the club’s Q4 financial statements and its associated investor call, typically released in September’s third week, appear to be postponed or discarded. Given its status as a ‘foreign issuer’, Manchester United has looser regulations regarding quarterly reports but must still present its annual reports within four months of the fiscal year-end.
