Man United discusses granting exclusivity to Qatari Sheikh Jassim in club sale, say sources

LONDON – Manchester United are

negotiating granting exclusivity to Qatari banker Sheikh Jassim bin Hamad Al-Thani

in talks to sell the club for more than US$6 billion (S$8 billion), people familiar with the matter told Reuters on Thursday.

While a deal remains uncertain, the development represents a major milestone in the efforts of Sheikh Jassim – the son of a former Qatar prime minister – to take over the club.

The Glazer family, who control a majority stake of 69 per cent in United, would be cashing out completely as part of the proposed deal, one of the sources said.

The Qatari offer, for 100 per cent of the club including the 31 per cent that is floated on the New York Stock Exchange, is viewed by the Glazers more favourably than a bid from British billionaire Jim Ratcliffe, founder of chemicals producer Ineos.

Ratcliffe’s offer envisions the unpopular Glazers keeping some stakes in United, which will not go down well with fans.

United would not be allowed to negotiate with any bidder other than Sheikh Jassim for the exclusivity period. It is not known how long this period may last, according to Reuters’ mergers and acquisitions editor Anirban Sen.

The sources cautioned that the situation remained fluid and a new bid from Ratcliffe could still prevent Sheikh Jassim from securing exclusivity.

The Glazers are understood to value United at £6 billion (S$10.3 billion) and American merchant bank Raine Group was brought in last November to oversee the process.

Representatives for United did not respond to requests for comment, while AFP reported that a source close to Sheikh Jassim said that the Qatari bidders were still awaiting clarity from the club.

Before the news by Reuters broke, former United defender Rio Ferdinand – who seemingly has insider information – backed the Qatar bid in a video posted on his YouTube channel.

“The Man United takeover is imminent,” he said. “We are hearing the Qatari bid is the one that has been accepted, the one that is imminent and the one that is going to go through.

“Hallelujah, man. I cannot wait. Please let this happen.”

Following the news, other outlets like Sky News Arabia and Spectator Index also reported that Sheikh Jassim is about to enter a period of exclusivity with the Glazers.

France’s RMC Sport said: “According to information from Reuters confirmed by RMC Sport, Qatar is preparing to enter into exclusive negotiations with the Glazer family, owners of Manchester United, for the takeover of the English club.”

The BBC’s economics editor Faisal Islam added: “Reuters sources are very well-connected merchants and acquisitions reporters from New York.”

However, British sports journalists had opposing views on the matter.

The Daily Mail’s Mike Keegan, who has been close to sources in the bidding process, said that there is still some way to go before a preferred bidder is chosen.

He added that even if there is an imminent official announcement, “a further eight to 12 weeks’ approval process would follow before a deal is officially approved”.

Others tried to dismiss the Reuters report.

The BBC’s Simon Stone said: “There has not been any exclusivity granted – talks will continue with multiple parties.”

“Sir Jim Ratcliffe remains the favourite to complete the Man United takeover,” insisted Matt Lawton and Mike Dickinson of The Times of London.

United’s share price could be a good indication of the outcome. Shares jumped as much as 15 per cent on the news and ended trading in New York on Thursday up 6.8 per cent at US$24.81.

“The share price is a bit like a barometer of the likelihood of a Qatari victory, because the Qatari bid includes buying the New York listed shares,” said Islam.

“When you see the share price going up, that’s a sign the market thinks a Qatari win is likely.”

A new company, Nine Two UK Holdings Limited, was also incorporated in Britain on Thursday, understood to be part of Sheikh Jassim’s preparations should his bid be successful. REUTERS, AFP