Proactive Investors - Manchester United (LON:0Z1Q)'s stock market investors are evidently uninspired by Sir Jim Ratcliffe’s mooted proposal to now acquire only a 25% stake and join the Glazer family in co-ownership of the club.
Alternative media reports, meanwhile, claim the Qatari businessman Sheikh Jassim bin Jaber Al Thani ‘still wants to complete’ a full takeover, as his unanswered £5 billion takeover offer remains the ‘highest’ offer made to the Glazers, who are said to be holding out for a larger valuation.
Ratcliffe’s minority deal would follow a similar, albeit smaller, transaction last week by Premier League rivals Liverpool – which sold a minority stake to American investment group Liberty.
Ratcliffe’s INEOS would, according to UK media reports, buy a mixture of Class A shares which are listed on the New York Stock Exchange and the more potent Class B shares which are held by the Glazer family and have 10:1 voting power over the subordinate listed equity.
As an approach, the split transaction would appease minority holders of the listed shares some of which previously complained about being cut-out by the British billionaire’s previous proposals.
It would also represent something of a climb down from Ratcliffe’s original intent to take a controlling 69% stake in the company, by acquiring the shares held by the Glazer siblings.
No specific deal terms were given in the UK tabloid reports, and, Manchester United has not made any official announcements regarding its ongoing process since
If such a deal was advanced, a minority stake deal could give Ratcliffe a material foothold in the company, and create an obstacle for rival bidders, should he seek to increase his stake in the future.
Meanwhile, for the Glazers the potential deal economics could enable them to retain control over the Old Trafford club whilst releasing funds and setting a new higher valuation benchmark for the shares they retain.
According to Sky News, a £1.5 billion transaction for 25% stake would be in-line with the Glazer family’s minimum valuation of £6 billion for the whole club.
If no new equity is sold to Ratcliffe the proposed deal would not raise capital for Manchester United, rather the deal proceeds would be paid to the Glazer family members and holders of listed shares.
In New York, Manchester United stock was indicated just 0.2% higher in early premarket dealing at $19.45 valuing the football club at just over £3 billion.