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Manchester United have completed the sale of a part of the club's stakes to billionaire Jim Ratcliffe. The INEOS chairman completed the 25 per cent of Manchester United for about GBP 1.25 billion ($1.6 billion). Ratcliffe and Co. will take over Man United's football operations on Sunday.
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The 71-year-old British billionaire will further inject $300 million for future investment into Old Trafford. INEOS will also get two seats on the Manchester United PLC and Manchester United Football Club boards. Ratcliffe's PLC board seats will go to John Reece, a shareholder of Ineos, and Rob Nevin, chairman of Ineos Sport. On the Man United board, the seats will go to former British Cycling chief Sir Dave Brailsford and former Juventus and Paris St-Germain executive Jean-Claude Blanc.
A club statement said: "Manchester United announces that it has entered into an agreement under which chairman of INEOS, Sir Jim Ratcliffe, will acquire 25 per cent of Manchester United's Class B shares and up to 25 per cent of Manchester United's Class A shares and provide an additional $300 million intended to enable future investment into Old Trafford.
"As part of the transaction, INEOS has accepted a request by the board to be delegated responsibility for the management of the club's football operations." Ratcliffe said he wanted to see struggling United "back where we belong, at the very top of English, European and world football".
The club statement further explained the complete details of the purchase. "Under the terms of the transaction agreements, Trawlers Limited will (i) acquire 25% of the Class B ordinary shares of the Company, par value $0.0005 per share ("Class B shares"), and (ii) initiate a tender offer to acquire up to a number of shares that, at launch, will represent 25% of the Class A ordinary shares of the Company, par value $0.0005 per share ("Class A shares"), in each case at a price of $33.00 per share in cash. Subject to a sufficient number of Class A shares being tendered in the offer, Trawlers Limited would own 25% of the Club following the closing of the transaction.
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Sir Jim will provide a $300 million fund intended to enable future investment into the Club's infrastructure at Old Trafford, comprising $200 million paid upon the closing of the transaction and a further $100 million by the end of 2024. Trawlers Limited will be issued additional Class A and Class B shares at $33.00 in respect of such investment," the statement read.
