A document has revealed that the Glazer family can force Sir Jim Ratcliffe to give up his 25 per cent stake in Manchester United in 18 months.
The British billionaire agreed to buy a minority stake in the club for £1.3billion and watched the Red Devils draw with Tottenham at Old Trafford on Sunday.
The Premier League is yet to approve his investment, but it should happen in the next three to five weeks.
Last month, reports claimed that Ratcliffe would have to sell his shares if the Glazers decided to sell the club in 18 months. The Times has now shed more light on the deal.
According to the report, the Ineos chairman can make the first bid if the majority owners want to sell the club, but he risks losing to a higher bidder.
The Glazer family can sell Manchester United to another buyer after 18 months, forcing Ratcliffe to sell his stake.
The document says that the Glazers cannot look for new offers for 12 months after Ratcliffe’s offer closes on February 13, but they can sell the club six months later.
The document states: “The Company Board may ask the Trawlers party to sell all their company ordinary shares and do whatever is needed to complete the full sale, as long as the Glazer parties are the majority holder and 18 months have passed since the closing date.”
This is called a ‘drag-along right’, which means Ratcliffe will get the same amount as any other shareholder of the same class.
The document adds: “The Trawlers parties will get at least $33 per share, which is the offer price, if the sale happens within three years of the closing of the offer.”
The document also says that the Glazers or their agents cannot “start, seek, or support any full sale before…12 months after the closing date”.
‘Trawlers Limited’ is the name of the 71-year-old’s investment company.
The report adds that a separate filing on the United States Securities and Exchange Commission (SEC) says that Sheikh Jassim, Ratcliffe’s rival bidder, did not offer enough money or financial guarantees to the Glazers.
The filing states: “Bidder A did not have the usual financing commitment letters. The board of directors asked Manchester United’s representatives to find a better deal for the shareholders and make Bidder A prove that they had the money to close the deal.” Sheikh Jassim’s bid is ‘Bidder A’.
