Manchester United’s takeover by British billionaire Jim Ratcliffe has been approved by the Premier League, pushing it one step closer to completion.
New York-listed shares in Manchester United Plc (NYSE:MANU) rallied over 10% to more than US$21.50 following the news.
In a deal worth around £1.03 billion, Ratcliffe, who is the owner of UK conglomerate Ineos, will not only inject much-needed funds into the football team but will also take control of operations.
Current owners the Glazer family will keep their majority stake in the Red Devils and are expected to retain most of the voting power.
Approval from the Football Association, England’s governing body for the sport, is still required for the deal to go through.
However, approval from the Premier League was vital for the deal to continue.
“The Premier League now awaits confirmation of the transaction’s completion,” a statement on its website said, adding that its Owners’ Charter had also been signed.
Back in December, the football club agreed to Ratcliffe’s deal which also included an additional US$300 million investment into the club’s facilities and stadium.
As part of the deal, Ratcliffe will purchase around 25% of Class B shares, most of which are owned by the Glazers and hold voting rights, and 25% of the US-listed Class A shares.
Investors can place their shares up for sale to Ratcliffe until Wednesday, however almost 37% of all Class A shares have already been tendered.