Manchester United PLC MANU shares are rising after a report that petrochemical magnate Jim Ratcliffe is on the verge of securing a 25% stake in the football club.
What Happened: After extended negotiations, the parties have reportedly agreed on a price of approximately $33 per share — a 75% premium over the club's recent closing price on the New York Stock Exchange.
The football club is valued at around $3.04 billion, according to Sky News.
The deal's finalization, although still under negotiation, could mark a significant turn in the sports and business world, namely for the Glazer family, which has controlled the club for the last 18 years.
The Glazers aim to conclude the agreement before the U.S. Thanksgiving holiday. Ratcliffe's firm, Ineos Sports, intends to acquire equal shares of the club's A and B shares, the latter carrying more significant voting rights and held exclusively by the Glazers.
This investment comes alongside the departure of Manchester United CEO Richard Arnold, indicating Ratcliffe's growing influence. Patrick Stewart, the club's general counsel, is set to assume the interim CEO role.
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Why It Matters: The strategic review, launched last year, was a response to the growing discontent among fans and stakeholders alike.
The auction was close to ending back in June, but with a different buyer: Sheikh Jassim bin Hamad Al Thani of Qatar.
Manchester United secured its first trophy in six years with the Carabao Cup victory last season.
Ratcliffe is committing a substantial portion of his wealth to rejuvenate United's infrastructure, with over $300 million earmarked for development in addition to the acquisition cost. This investment will be personally financed by Ratcliffe, not adding to the club's existing debts.
Manchester United's shares have fluctuated significantly amid various reports about the sale's progress. The Glazers' tenure has been marred by controversy and protests, especially following the club's involvement in the failed European Super League project.
Price Action: MANU shares are trading higher by 7.38% at $18.43 in premarket on the last check Friday.
See Also: Manchester United Attracts Record Takeover Bid
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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