Proactive Investors - Manchester United (NYSE:MANU) PLC (LON:0Z1Q) shares raced higher in New York’s premarket dealing amid reports that Jim Ratcliffe’s stake acquisition will be priced at a substantial premium.
Ratcliffe and the Glazer family are on the brink of finalising a $33-a-share deal that will see the petrochemicals tycoon acquiring a 25% stake in Manchester United Football Club, according to a Sky News report.
Sky News said that after months of talks between the Ineos billionaire and the Red Devils' controlling investors for the last 18 years have settled on a price of roughly $33-a-share.
If confirmed, it would represent a premium of more than 75% to Thursday's New York Stock Exchange closing price of $18.43, which gave the Old Trafford club a market capitalisation of $3.04 billion (£2.44 billion).
Notably, Sky said that Ratcliffe is expected to buy a mix of both New York listed shares (the ‘A’ shares) and those held privately by the Glazer family (‘B’ shares) which are more influential as they carry more voting rights.
Sky said confirmation of the deal could be announced on Monday, with Ratcliffe said to be keen to get it wrapped up before the American Thanksgiving holiday on Thursday.
In New York, Manchester United shares were up $1.38 or 7.5% changing hands at $19.81 apiece.
Boardroom changes earlier this week apparently signalled movement toward United’s new regimes.
The football club announced on Wednesday that chief executive Richard Arnold is exiting the Old Trafford club.
Arnold took the top business role at the club last year, succeeding controversial colleague and former banker Ed Woodward. He departs after 16 years at the football club.
Ineos co-owner Ratcliffe is expected to usher in a number of changes at Old Trafford upon closing his US$1.5 billion deal to gain a minority stake with ex-Juventus, Olympics and Paris Saint Germain executive Jean Claude Blanc reportedly set to take up the chief executive position under the new regime.
A search process will be carried out for a new permanent CEO, the company said.
In the meantime, United’s general counsel Patrick Stewart will assume the role of interim chief executive and Arnold is set to provide "transitional support" up until the end of December.