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Famed soccer club Manchester United (NYSE:MANU) agreed to sell a 25% stake to British billionaire Sir Jim Ratcliffe for $1.3 billion.
Ineos Chairman Ratcliffe Ratcliffe will pay $33 a share for the 25% stake in the soccer club, according to a statement on Sunday. The sale prices values Manchester United (MANU) at about $5.4 billion, below what some thought could be a $6 billion valuation for the club.
“Our shared ambition is clear,” Ratcliffe said in the statement. “We all want to see Manchester United back where we belong, at the very top of English, European and world football.”
Ratcliffe will also provide an additional $300 million intended to enable future investment into Old Trafford stadium, where the famed English Premier Team plays its home games.
The Glazer family and Class A shareholders will receive the same price of $33 per share, according to the statement. Ineos will be given responsibility for the management of football operations.
Under the terms of the deal, Ratcliffe will acquire 25% of the Class B shares owned by the Glazer family and begin a tender offer for 25% of the listed Class A shares.
The deal comes after Ratcliffe, the chairman of chemicals giant Ineos, had been competing against an offer from Qatari Sheikh Jassim for much of this year. The sale comes after the Glazer family originally announced last November that it was weighing a sale of the famed British soccer club.
Completion of the deal is subject to receiving all necessary regulatory approvals including from the Premier League.
