Jim Ratcliffe, one of Britain’s wealthiest men, has made his intentions to take over Man Utd public.
Jim Ratcliffe: ‘In the process’.
The first serious talks took place between Ineos and United just hours before the petrochemicals giant released a statement confirming plans.
In November, it was revealed how the owner was ready to make an approach. It was then disclosed last week how he was advancing with an indicative bid.
“We have formally put ourselves into the process,” a spokesman for Ineos has now confirmed. However, as reported on Friday, formal bids will not be invited until the middle of next month. There is also serious interest elsewhere in the Middle East, Asia and the US.
Ratcliffe, however, is the first billionaire to confirm in public that he plans to pursue the club again, having previously failed to advance past talks with the Glazers last year.
Over the coming weeks, other potential investors from around the world will go public with their attempts to buy the sporting giant.
The clock is now ticking on a deal, as it is understood senior figures will issue a mid-February invite for formal offers. Co-owner Avram Glazer flew to the World Cup in Doha last month and is also in Davos this week, where United have set up a shop front this week as the world’s political and business elites gather there.
United have insisted the lounge is to entertain clients and partners rather than to attract buyers. The Glazers want a deal completed before the end of the current season. With that in mind, different prices depending on Champions League qualification are likely to be factored into offers from Ratcliffe and others.
However, interested parties underline it remains in the balance whether the Glazers will completely end their hugely controversial 18-year ownership. United are expected to inform interested parties in the coming days that formal bids will be taken next month for total buyouts as well as minority stakes.
There appears to still be flexibility around the mid-February deadline, but the club is still aiming to complete a deal within the first quarter or by the end of April.
Ministers in Saudi Arabia and Qatar have previously played down the prospect of a state-backed buyout, given competing interests at Newcastle United and Paris Saint-Germain.
However, other well-placed sources have once again warned against ruling the two nations out. Much of the feeding frenzy to buy Chelsea was in America last spring, and, while there is once again keen appetite in the US, there have been conversations with a host of wealthy Arabic investors as well as interest from Asia.
Having swooped late with a bid during the Chelsea takeover saga last year, Ratcliffe is changing tactics by confirming now that he is in the race. The petrochemicals giant is known to have ruled itself out of an investment at Inter Milan in recent weeks.
At United, a price beyond £6billion (€6.8bn) has been touted, but insiders remain tight-lipped about the Glazers’ ballpark price. Ratcliffe is known to remain wary about overpaying.
He had failed in his late bid to buy Chelsea over the summer largely because he initially walked away from talks because he initially thought the club was being too greedy.
Ratcliffe has supported United since boyhood and attended the 1999 Champions League final.
Taking over the Old Trafford club would not necessarily mean Ineos would have to sell French club OGC Nice. However, they would not be allowed to play against each other in Europe under UEFA rules. Ineos has invested in F1 and cycling, while their football clubs also include Swiss club Lausanne.
United have spent more than £1.1 billion servicing the Glazers’ leveraged takeover in 2005 while the Americans have pocketed around £465m in share sales and the club’s gross debt still stands at an eye-watering £680m.
Richard Arnold, the Man Utd chief executive, said recently that any new investors in the club will be urged to work closely with fans and expressed hope a potential full or partial sale would prove a “positive” step forward.
“We will be advising any prospective new investors on the value of the fan engagement processes we have built in recent years, and recommending that they continue to be strengthened,” Arnold told United’s latest fans’ forum meeting last month.
United supporters’ groups from across the world signed an open letter to potential bidders last month urging any new owners to unravel years of Glazer family failures.
source: https://www.independent.ie/
