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Manchester United (NYSE:MANU) slid almost 10% after billionaire Jim Ratcliffe completed his purchase of a more than 25% stake in the famed soccer club.
The English soccer club announced on Tuesday that Manchester United plc , and Trawlers Limited, an entity wholly-owned by Ratcliffe, confirmed that the billionaire had completed his acquisition of 25% of the club’s Class B shares and 25% of the club’s Class A shares for about $1.3 billion.
Manchester United (MANU) in late December agreed to sell a 25% stake to Ratcliffe, more than a year after the club said it was evaluating a sale. Ineos Chairman Ratcliffe agreed to pay $33 a share for the stake.
Although some fans of the English Premier soccer club may be excited by the Ratcliffe deal, shareholders haven’t been as thrilled with the shares up 18% since the Glazer family said it was exploring the sale of the team, and the stock is down almost 25% since hitting a high of $25 in late June.
“This marks the completion of the transaction, but just the beginning of our journey to take Manchester United back to the top of English, European, and world football, with world-class facilities for our fans,” Ratcliffe said in a statement on Wednesday.
Following the closing of the offer and the acquisition of the Class B shares, Ratcliffe invested $200 million into the club for additional Class A and Class B shares via a primary issuance, resulting in ownership of approximately 27.7% of the club’s Class A shares and 27.7% of the club’s Class B shares, with a further $100 million to be invested by Dec. 31.