Sir Jim Ratcliffe may face the possibility of selling his 25% stake in Manchester United within 18 months, according to recent developments.
The British billionaire’s investment in the club was made public on Christmas Eve, following a deadline set by the 71-year-old. Ratcliffe has reportedly paid the Glazers £1.03 billion for his stake in the club.
Ratcliffe, who was seen watching United’s match against Tottenham alongside Sir Alex Ferguson at Old Trafford, has officially submitted his offer for a share of the Red Devils. The offer is expected to be finalized by mid-February and was officially presented on the New York Stock Exchange.
However, a tender document has revealed certain rules regarding the future sale of the club. According to a filing with the United States Securities and Exchange Commission (SEC), the Glazer family is not permitted to solicit or encourage any new offers for the first year after the tender offer is completed on February 13, unless they have written consent from Ratcliffe’s Trawler Ltd company.
Once this initial one-year period has passed, the Glazers would have the freedom to sell Manchester United outright. In such a scenario, Ratcliffe’s Trawlers Ltd company would be required to sell all their shares to any potential new buyer.
The tender document outlines the “drag-along right” for the Glazers, stating:
“For so long as the Glazer parties are the majority holder, following the date that is 18 months after the closing date and in connection with any sale of the entire company, the Company Board may require the Trawlers party to sell all of their company ordinary shares and take such other actions as are reasonably necessary to effect the full sale.”
It does also ensure that Ratcliffe will be guaranteed the equal amount “as the highest amount paid to any other shareholder of the same class of shares”.
The document says: “If the sale occurs within three years of the closing of the offer, the Trawlers parties must receive at least $33 per share, which is the same price as the offer price.”
In the meantime, Ratcliffe has penned a letter to the Manchester United Supporters Trust, expressing his commitment to doing everything within his power to restore the club to its former glory.
His statement said: “I wanted to write to you at this time given the critical role of the fans to the future of Manchester United as we recognise our responsibility as custodians of the club on your behalf.
“I believe we can bring sporting success on the pitch to complement the undoubted commercial success the club has enjoyed.
“It will require time and patience alongside rigour and the highest level of professional management.
“You are ambitious for Man Utd and so are we. There are no guarantees in sport, and change can inevitably take time but we are in it for the long-term and together we want to help take Man Utd back to where it belongs, at the very top of English European and world football. I take that responsibility very seriously.
“Please note that, as with any deal, it is subject to the usual regulatory sign-off process and therefore we do not expect to speak publicly about club matters until after the deal has completed.”
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