Manchester United (NYSE: MANU) faced a significant drop in its stock value during early Monday trading as news broke that the Qatari group led by Sheikh Jassim bin Hamad J.J. Al Thani had withdrawn its bid for the Premier League football giant.
In the race for control of Manchester United, both Sheikh Jassim and Jim Ratcliffe had been contenders, challenging the current ownership held by the Glazer family. At the most recent closing, the club boasted a valuation of $3.3 billion.
According to reports from Reuters, Jim Ratcliffe was prepared to offer $1.5 billion for a 25% stake in the club. This suggested a significant valuation of the football club, approaching $6.5 billion, exclusive of the net debt, which currently stands at over $600 million. Ratcliffe’s offer also included taking responsibility for talent acquisition and management at Manchester United should his bid prove successful.
Sheikh Jassim, on the other hand, has informed the Glazer family that he does not intend to increase his bid any further. In response to this development, MANU shares experienced an 11.1% decline as of 05:10 ET (09:10 GMT).