Six Glazer siblings to retain part of Man Utd under Ratcliffe offer

Six Glazer siblings could retain a stake in Manchester United in a proposed phased takeover of the football club by Sir Jim Ratcliffe, who is seeking a way through the share structure and family dynamics that have complicated the deal.

The Glazer family launched a strategic review more than six months ago, but the process has dragged on with only two completed takeover bids for one of the biggest names in global sport.

The offer by Ratcliffe and his Ineos chemical empire is complicated because, unlike a rival offer from the Qatari bidder, he is not seeking to acquire 100 percent of United’s shares in one go, according to people close to the discussions.

United has a listing on the New York Stock Exchange but controls 95 percent of the Glazers’ voting rights, thanks to a special class of B shares. Publicly traded A shares, which are held largely by minority shareholders, have minimal voting power.

Ratcliffe, who traveled to New York last month for talks, is seeking to acquire at least enough B shares to hand him control of the club, in an offer that is not expected to be extended to common shareholders.

Some people involved in the process and those connected with the club had expected United co-chairmen Joel and Avraham Glazer to seek a deal that would see them keep their shares with their four siblings – Brian, D’Arcy, Edward and Will allow you to extend your stay. Kevin – Totally freaking out.

Many said the process, which was first announced last November, has been complicated by a lack of cohesion among the six Glazer siblings. The Glazers have received several offers from investment firms to provide funds to inject into the club without a change of control.

However, two people with knowledge of the matter said the Glazers are now focused on a structure that would allow the six siblings to sell their holdings in proportion to their holdings, allowing Ratcliffe to take control.

Ratcliffe and Inios will buy the rest of the Glazers’ shares through derivatives contracts over the coming years.

The structure of Ratcliffe’s bid meant he could participate with less capital, gain majority control and invest in the club.

One of the people said, “The money has started falling.” “There is no need to make an offer to all shareholders.”

The uncertainty surrounding a deal has depressed United’s publicly traded shares since hitting a high of $27 in mid-February. At its current share price of $18.63, United’s equity is valued at approximately $3bn.

One issue surrounding Ratcliffe’s plan to buy the B shares is that the United Stock Exchange filing says that the Class B shares “automatically and immediately” convert into Class A shares upon transfer from the Glazers to “any person or to the institution which is not affiliated with the holder”.

One possible solution is for the Glazers to vote through changes that would allow the B shares to pass to Ratcliffe without turning them into A shares, said two people close to the process.

Inios Group remains flexible on the structure to increase their chances of winning over the Glazers, expected to value United at more than £5bn ($6.25bn) including debt. The people cautioned that no deal is guaranteed and the framework could change.

Despite a growing desperation among fans for clarity over the club’s ownership, a deal is not expected to be imminent. United’s performances on the pitch have improved this season, with their final match at Wembley on Saturday against crosstown rivals Manchester City in the FA Cup final.

The club has already won the League Cup and finished third in the Premier League, meaning it has qualified for next season’s lucrative UEFA Champions League.

United supporters have long held a grudge against the Glazers for amassing debt at the club after gaining control through a £790 million leveraged buyout in 2005. Fans also complain that United’s Old Trafford stadium lags behind rivals while the Glazers reap dividends from the club.

The American owners’ role in the failed attempt to set up a separate European Super League two years earlier added to the fury of the fans.

United’s board met last week and received updates on the various proposals in a process led by US merchant bank Rhine.

A person briefed on the meeting said Ratcliffe appears to be the more serious of the two bids at this stage, but it still includes a number of issues that need to be worked out.

Ineos, United and Rhine declined to comment.