Sir Jim Ratcliffe's Ineos Sports is reportedly in advanced talks to acquire a 25% stake in Manchester United (NYSE:MANU) at approximately $33 per share, according to information obtained by Sky News.
MANU stock rose 8.5% on the news.
If finalized, this deal would signify a substantial premium, exceeding 75%, compared to the closing price of $18.43 on the New York Stock Exchange on Thursday. The closing price had given Manchester United a market capitalization of $3.04 billion.
As part of the proposed agreement, Jim Ratcliffe is set to commit a $300 million investment in Manchester United's infrastructure. Notably, this investment is slated to be financed directly by Ratcliffe himself and would not contribute to the club's existing borrowings.
The pledged investments are expected to be disbursed in a staggered manner, with the majority earmarked to reach the club by the end of the year.
British media outlets reported earlier that the owners, the Glazers family, are set to hand over control of the football section to Ratcliffe as a part of the agreement that involves the purchase of the 25% stake.
The football club's CEO Richard Arnold announced this week he is stepping down.