Manchester United Ltd MANU shares are trading higher Tuesday after the company announced it reached a deal to sell 25% of its shares for $33 per share.
What Happened: Manchester United entered into an agreement in which INEOS chairman Sir Jim Ratcliffe will acquire 25% of its Class B shares and up to 25% of its Class A shares for $33 per share.
Under terms of the agreement, Ratcliffe will provide an additional $300 million intended to enable future investment into Old Trafford. As part of the transaction, INEOS will be delegated responsibility for management of the club's football operations.
"Sir Jim and INEOS bring a wealth of commercial experience as well as significant financial commitment into the Club. And, through INEOS Sport, Manchester United will have access to seasoned high-performance professionals, experienced in creating and leading elite teams from both inside and outside the game," said executive co-chairmen and directors Avram Glazer and Joel Glazer.
The decision comes more than a year after the company's board commenced a process to explore strategic alternatives for the club designed to enhance future growth.
The closing of the tender offer will be subject to the receipt of Premier League approval and other necessary regulatory approvals. Ratcliffe will pay $200 million upon closing of the transaction and another $100 million by the end of 2024.
MANU Price Action: Manchester United shares were up 4.08% at $20.65 at the time of publication, according to Benzinga Pro.
Photo: nmoodley from Pixabay.
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