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I don’t have inside track, but a few thoughts on reports of Ineos bidding for MUFC at a higher valuation than Jassim….
There is no need for any bidder to buyout the non-Glazer minority. It’s also often said that Joel and Avram Glazer don’t want to sell and the other siblings do. It sounds from reports in recent days that Ratcliffe has offered J+A the chance to keep a minority stake.
That’s clever as he can’t match the resources of Qatar, and it allows him to offer the Glazer family members who DO want to sell a higher price for their shares with his more limited funds.
Jassim may think the club isn’t worth more than an enterprise value of £5bn (so c. £4bn equity value after debt), but he has to pay the whole £4bn, plus pay off the debt if he wants.
It sounds like Ratcliffes offer is more valuable AND cheaper for him. If the Glazers (who have 69%) keep 18%, then Ratcliffe can buy 51% and gain control.
He could bid at an enterprise valuation of say £6bn (so around £5bn equity value after debt) and only have to pay £2.55bn for that 51%.
The logic applies even if Joel and Avram sell out to Ratcliffe as he has to pay £5bn x 69% = £3.45bn.
So if this is how it goes, and I have no idea if it will, Ratcliffe gets the exploit the existence of a) the minority non Glazer holders and possibly b) the desire of Joel and Avram to keep a stake, and gets the club for a lower cash outlay AND a higher value that Jassim’s bid.
Anyway, time will tell. #UTFR
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