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Manchester United stock price surge: Is Sheikh Jassim close to a deal to buy the club?
After months of speculation the Glazers may finally have agreed to sell the club to a member of Qatar’s royal family.
Manchester United’s stock price rose significantly on Monday as reports suggest a proposed deal to buy the club is nearing completion.
As of 19:40pm (ET), the club’s stock on the NYSE had risen in value by more than 16% in the aftermath of the reports. Much of this rise came outside of regular trading hours but there is a clear buzz around Manchester United.
Sheikh Jassim bin Hamad Al Thani has been a key player throughout the bidding process and he placed a fifth offer to buy the club last week. A member of the Qatari royal family, Sheik Jassim’s offer would see him take full control of Manchester United if successful.
No official announcements have been made but Qatari media organisations on Twitter have claimed that a deal is near approval. Zaid Al-Hamdan of the Canadian Qatar Business Council wrote to congratulate Sheikh Jassim on his “acquisition of Manchester United”.
The Premier League side, England’s most successful team, have been the subject of countless bids in recent months as the Glazer family consider parting company with the club that they have owned for two decades.
Why has the Manchester United stock price gone up?
Despite the lack of confirmation from any of the parties involved in the proposed sale, the latest reports have caused a stir on the stock market. Manchester United are a publicly traded company on the New York Stock Exchange (NYSE) and investors seem to be reacting to the reports from Qatar.
The is hope amongst some supporters that a Qatari takeover could bring greater investment in the playing squad and the club as a whole. However this is not the primary reason for the rise in stock price seen on Monday.
Between them members of the Glazer family currently own around 69% of Manchester United, with the remaining 31% floated on the NYSE. Some prospective buyers, like Sir Jim Ratcliffe, have proposed to buy the Glazer’s controlling stake in the club but leave the rest of the shares available to investors.
The Qatari bid, meanwhile, will look to take total control of the club. This would involve buying back the shares that have previously been sold off to investors. Should Sheik Jassim’s bid be accepted by the Glazers his team would then set about buying up the remaining shares, pushing up the price considerably. This possibility has pushed up the price of shares on the NYSE as rumours of a sale swirl.
More on this breaking news story as it develops...