MANU shares soar as Ratcliffe seals game-changing acquisition

Lea Hogg December 26, 2023

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MANU shares soar as Ratcliffe seals game-changing acquisition

The market has responded positively to this week’s acquisition of Manchester United with a 4.7 percent surge in premarket trading reflecting optimism about the new partnership.

In a pivotal move for the iconic English soccer club, British billionaire Sir Jim Ratcliffe successfully acquired a 25 percent minority stake in Manchester United Ltd. (MANU). The announcement, made on Christmas Eve, revealed Ratcliffe’s acquisition of Class B shares previously held by the American Glazer family, the club’s owners, along with the option to acquire up to 25 percent of Class A shares.

Ratcliffe’s governance overhaul:

The agreement not only reshapes Manchester United’s ownership structure but also introduces a strategic investment plan.

The deal, valued at US$ 5.4 billion, includes a US$ 300 million commitment from Ratcliffe for future investments in the redevelopment of Manchester United’s historic Old Trafford stadium. Additionally, Ineos Group, Ratcliffe’s chemical conglomerate, has taken on a pivotal role by accepting responsibility for the club’s football operations. This comprehensive delegation encompasses all aspects of men’s and women’s football operations, as well as the club’s academies. Ratcliffe’s conglomerate also secures two seats on both the Manchester United PLC board and the Manchester United Football Club boards.

Finally an end to takeover battle with Qataris

Ratcliffe’s successful acquisition concludes a takeover battle that unfolded against Qatar’s Sheikh Jassim. The Glazer family, who have been the owners of Manchester United since 2005, initiated the sale of a minority stake amidst mounting pressure. The $33 per share deal marks a significant moment for both the Glazers and Class A shareholders, valuing the club slightly below initial expectations at $5.4 billion. This strategic move comes after the Glazers confirmed in November 2022 that they were exploring options for their investment or a potential outright sale of the Premier League club.

Positioned eighth in Premier League

Manchester United, currently positioned eighth in the Premier League, is set for a transformative chapter with Ratcliffe’s infusion of capital and strategic vision. The market’s positive response to the news reflects heightened anticipation for the club’s future trajectory under the guidance of the renowned British billionaire. As the club faces Aston Villa at Old Trafford, the implications of this game-changing acquisition will undoubtedly resonate both on and off the pitch.

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