Speculation about a new takeover saga at Manchester United has ramped up over the past week or two.
It is quickly approaching the two-year mark since Sir Jim Ratcliffe completed a £1.2bn takeover of Manchester United, acquiring just short of 29% of the club’s shares and assuming full sporting control.
Ratcliffe’s first year was controversial, and the British billionaire is still facing scrutiny as the Red Devils continue to underperform on the pitch.
Recently, Saudi Arabia figure Turki Al-Sheikh sparked takeover speculation on social media, claiming a deal was in “advanced stages”.
The Glazer family still owns the majority of United’s shares, but it seems a new takeover saga could be on the horizon.
Glazers might plan to sell Man United before 2027
Within the Ineos takeover deal, there are drag-along rights which mean the Glazers can force Ratcliffe to sell if a suitable offer is made from a new party.
TalkingPoints
Do you want Sir Jim Ratcliffe to remain in control of Manchester United?
There was an 18-month exclusivity period for that clause which has now expired, meaning the Glazers can accept a new takeover bid provided the offer matches the $33 per share paid by Ratcliffe in 2024.
However, that minimum price agreed by Ratcliffe and the Glazers expires in February 2027. Journalist Laurie Whitwell has explained why the Glazers might pursue a takeover deal before that deadline.
Speaking on the Talk of the Devils podcast, Whitwell said: “Some people will now say that it’s in the Glazers’ interest before February to get a new deal in place with somebody else because that creates competitive tension and they get a higher price for their shares.
“But also after that point, why would anybody want to buy the club now, because there is this automatic minimum there, so why wouldn’t they just wait until February 2027?
“So maybe all this kind of chatter, is it because the Glazers want to – I don’t know, I’m theorizing here – but there’s a world where they could want to get some interest around it to get something going before that deadline.
“After that, they might not be able to get the same kind of price. It’s a fascinating dynamic.”
Man United share price soars amid takeover speculation
It feels increasingly certain that the current status of United’s ownership is only temporary, with either Ratcliffe or a new bidder likely to buy out the Glazers.
The latest speculation, which includes potential investment from the UAE, has certainly sparked a reaction in the stock market.
READ MORE: Turki Al-Sheikh issues update on Man Utd claims, Glazers stance and where Ineos fit in
As pointed out by football finance expert Kieran Maguire, United’s public share price on the New York Stock Exchange has soared since the takeover speculation began, adding $290m to the value.
The Glazers value United at around £5bn, and it seems they might want to drum up takeover interest ahead of the 2027 deadline.
from United In Focus https://ift.tt/1ZUnCyN