In a significant turn of events for Manchester United (NYSE: MANU), the club’s stock took a sharp nosedive on Monday as news broke that the Qatari group led by Sheikh Jassim bin Hamad J.J. Al Thani had decided to withdraw its bid for the Premier League titan. The stock markets reacted swiftly to this unexpected development.
Both Sheikh Jassim and Jim Ratcliffe had been locked in a fierce battle for control of Manchester United, which is currently under the ownership of the Glazer family. This contest for ownership had captured the attention of investors and football enthusiasts alike.
As of the last market close, Manchester United was valued at a substantial $3.3 billion, underscoring its status as one of the world’s most valuable football clubs.
Rumors had been circulating for some time that Jim Ratcliffe was prepared to make a substantial investment in Manchester United. It has now been reported that Ratcliffe was willing to pay a staggering $1.5 billion for a 25% stake in the club. This astounding offer suggested a valuation of the football club at nearly $6.5 billion, excluding its substantial net debt, which stood at over $600 million.
Furthermore, Ratcliffe’s proposal extended beyond mere ownership. He expressed his intention to assume responsibility for talent acquisition and management at Manchester United should his bid prove successful, indicating his commitment to revitalizing the club.
In a related development, Sheikh Jassim informed the Glazer family that he would not be revising his bid upwards any further, signaling his withdrawal from the competitive takeover race.
At 05:10 ET (09:10 GMT), MANU shares bore the brunt of this news, plummeting by a staggering 11.1%. The financial markets responded strongly to these unforeseen developments, casting uncertainty over the future ownership of this footballing powerhouse.
