Manchester United Shares Fall as Ratcliffe’s Stake Bid Dents Buyout Hopes
Manchester United Stock Drops Amidst Stake Acquisition Concerns
Shares of Manchester United experienced a significant decline of approximately 10% on Monday. Reports emerged that British billionaire Jim Ratcliffe is seeking to acquire a 25% stake in the soccer club. This news raised concerns that the potential full buyout by Qatar’s Sheikh Jassim bin Hamad al Thani may no longer be on the table.
Lowest Stock Level in Over Four Months
The stock of Manchester United reached its lowest point in more than four months, falling to $17.95. This decline comes as a result of the uncertainty surrounding the potential acquisition.
Billionaire Ratcliffe’s Bid for Manchester United Stake
Jim Ratcliffe, the Chair of Ineos, has made a bid of over $1.5 billion to acquire a stake in Manchester United. If accepted by the Glazer family, who currently control the club, Ratcliffe’s bid could lead to a significant change in ownership. The valuation of the soccer club would then be close to $6.5 billion, excluding net debt of over $600 million. Ratcliffe’s bid surpasses a rival offer from Qatar’s Jassim, who proposed acquiring 100% of the Premier League club.
Disappointment Among Shareholders
The sharp drop in Manchester United shares reflects the disappointment among shareholders, who had hoped for a full sale of the club. The possibility of a bid for the entire club would have provided a quick exit for shareholders. Now, they face the option of sticking around and hoping for success both on and off the pitch.
Fans’ Demand for Change of Ownership
A significant number of fans have been calling for a change of ownership due to the decline in the club’s fortunes under the Glazers. Manchester United has only won one top-flight title out of their 20 in recent times.
Jassim’s Bid Falls Short
Jassim recently informed the Glazer family that he will not increase his bid of over $6 billion for Manchester United. The club had a market capitalization of $3.26 billion as of Friday’s close. While the stock currently trades at a premium compared to November 2022 when a potential sale was announced, it has still experienced a decline of over 20% this year, with no clear outcome in the battle for ownership.
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