by Qatari Sheikh Jassim bin Hamad Al Thani’s bid for Manchester United has not once provided evidence of the source or proof of his funding, according to a new document on the club’s strategic review process.
It has also emerged that the Glazers offered Sheikh Jassim, the chairman of Qatar Islamic Bank, to buy United in May last year for $5.76 billion (£4.55 billion), excluding the club’s current debts.
Sheikh Jassim pulled the plug on his bid for a full takeover of United in October last year with sources close to the Qatari citing his frustration with the process.
But it can now be revealed that Sheikh Jassim’s bid has failed to provide any details of its funding despite repeated requests from United to do so.
Instead, United agreed a deal with Sir Jim Ratcliffe in which the Ineos founder will take a 29 per cent stake in the club subject to regulatory approval next month.
According to a new filing with the US Securities and Exchange Commission (SEC) that reveals the background behind the long 13-month saga, United made multiple requests for the Qatari offer to provide “routine financing commitment letters” but proof of financing never came.
The revelations are likely to raise further questions about Sheikh Jassim’s bid.
The son of former Prime Minister Sheikh Hamad bin Jassim bin Jaber Al Thani, one of the richest men in the Gulf state, sources close to Sheikh Jassim have always claimed that his proposed deal was being financed in a personal capacity.
Those same sources also rejected suggestions his bid was a state project ultimately funded by the Qatar Investment Authority, the Gulf nation’s sovereign wealth fund estimated to have more than £370 billion of assets.
United attracted interest from more than 170 parties, according to the SEC filing, before the club entered into 26 undisclosed deals, including with Ratcliffe and Sheikh Jassim, referred to as “bidder A” in the document.
Ten parties submitted initial indications of interest by a deadline of February 17 last year and at that point Sheikh Jassim was offering a deal worth $25 per share worth an estimated $4.1 billion (£3.2 billion to the club). The SEC filing states that the proposal did not include “standard financing commitment letters.”
Sheikh Jassim submitted an improved offer of $28 per share the following month but was told by United that “the proposal did not provide sufficient value to shareholders”.
By the end of April, 2023, the Qataris had increased their offer to $28.54 per share. Ratcliffe’s agreement remained unchanged at that time but the SEC filing says he “provided updated funding commitment letters to support” his proposal.
According to the document, representatives from United and Raine, the US brokers who ran the process, held meetings and teleconferences with Sheikh Jassim’s offer in May last year urging them to revise their offer and provide proof of funding.
However an improved deal worth $30.01 per share entered on May 16 that valued United at $4.9 billion (£3.9 billion), excluding debt, failed to provide any evidence of where the money coming.
Six days later, the Glazers counter-offered Sheikh Jassim by indicating that a “price of $35.25 per ordinary share” would be considered. This would value the club at £4.55 billion.
At a board meeting on May 25, it was decided that the club should “continue to seek improved shareholder value” and “require Bidder A to provide sufficient evidence of its funding sources that would be required to complete such a transaction “.
The SEC filing shows that Sheikh Jassim made another improved offer on June 1 last year worth $34 per Class B share, which has 10 times the voting rights of Class A shares, and $24.81 per A share, which was $5.20 less. per share A. offered two weeks before. “Again, this revised offer did not provide conventional financing commitment letters,” the document states.
At this stage, United also made it clear to the club’s bidders that any proposals had to value A’s shares at the same price as B’s shares. United and its directors were concerned about the threat of legal action from A’s shareholders which could felt at risk of being cut out of a market.
Discussions with the Qatari offer continued between June and August, including further requests to provide proof of funding. At a meeting between the two parties on July 26, the Qataris informed United that they were not prepared to offer a deal that valued A’s shares at the same price as B’s.
Further talks were held up to October 6 last year, including discussions in late September when the Qataris told Raine they were “still preparing to submit a revised proposal”.
However, on October 15, Sheikh Jassim’s bid informed United that they were “formally withdrawing” from the process.
Meanwhile, Ratcliffe has revised his proposal for a 25 per cent stake in a deal that values Class A and B shares at $33 a share as well as a commitment of $300m (£237m) in further investment in the club.
However, when talks dragged on in November and December, Ratcliffe – who was prone to delays – issued an ultimatum to the club and warned him that he would be fine if his offer was not accepted before the deadline. Christmas Day.
This led to “robust discussion” at an informal meeting of United’s board of directors on December 22 before the deal was finally approved at a board meeting two days later.
