Manchester United share price slumps after potential Ratcliffe minority stake bid
Manchester United’s share price has slumped today with news of a potential minority investment from chemical company Ineos owner Sir Jim Ratcliffe.
Shares on the New York Stock exchange opened at $18.22 but are hovering around 12 per cent lower, below $18 per share, as the likelihood of a majority takeover of the Manchester club lessened.
Despite bids which reached £5bn from, initially, Ratcliffe, and Qatari Sheikh Jassim Bin Hamad Al Thani – who reportedly pulled out of the running last week – it looks as if the club are set to favour a second bid from the Ineos chief which will see him acquire 25 per cent of the club for a premium of £1.3bn.
Manchester United uncertainty
It is uncertain as to whether the proposed minority investment would involve debt but it is understood that the deal will see Ratcliffe acquire both equity held by current owners the Glazers and shares traded on the New York Stock Exchange.
There have been reports which suggest Ratcliffe will get the keys to United’s footballing operations and Ineos’ sporting director and former British Cycling chief Sir Dave Brailsford is tipped for a role.
This comes nearly a year after the Glazers announced a strategic review which would see them listen to offers for the club, with suggestions of a £6.5bn asking price.
Fans have expressed their concern over the Glazers remaining at the club given issues with leveraging debt in the past.
Stadium Old Trafford is also in need of major repair and refurbishment.
Ratcliffe’s sporting portfolio includes stakes in GB’s America’s Cup boat and Mercedes’ Formula 1 outfit. He also owns Nice football club in France as part of an increasing book of investments.