Sheikh Jassim bin Hamad Al Thani’s Qatari bid for Manchester United never provided evidence of its source or financing, according to new documents relating to the club’s strategic review process.
It has also been revealed that the Glazers gave Qatar Islamic Bank President Sheikh Jassim the opportunity to buy United for $5.76bn (£4.55bn), excluding the club’s existing debt, in May last year.
Sheikh Jassim pulled the plug on a bid to take over United entirely in October last year after sources close to Qatar expressed disappointment with the process.
But it can now be revealed that Sheikh Jassim’s bid did not provide any details about his finances despite United repeatedly requesting it.
United instead reached a deal with Sir Jim Ratcliffe under which the Ineos founder will own a 29 per cent stake in the club, subject to regulatory approval next month.
United made numerous requests to provide “conventional financing commitment letters” to Qatar’s bid, but proof of financing never materialized, according to a new filing from the U.S. Securities and Exchange Commission (SEC) that provides background on the drawn-out 13-month story.
The statements are likely to raise new questions about Sheikh Jassim’s offer.
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 the proposed deal was financed in a personal capacity.
The same sources also rejected claims that his proposal was actually a state project funded by the Qatar Investment Authority, the Gulf nation’s sovereign wealth fund estimated to have more than £370bn in assets.
According to the SEC filing, United solicited interest from more than 170 parties before signing 26 confidentiality agreements, including Ratcliffe and Sheikh Jassim, referred to in the document as “Bidder A.”
Ten parties had submitted initial indications of interest by last year’s February 17 deadline; at this point Sheikh Jassim was offering a deal worth $25 per share, valuing the club at around $4.1bn (£3.2bn). The SEC filing states that the offering “does not include traditional financing commitment letters.”
Sheikh Jassim submitted an improved offer of $28 per share the next month, but United told him the offer “did not provide sufficient value to shareholders.”
Towards the end of April 2023, the Qataris increased their offer to $28.54 per share. Ratcliffe’s agreement at the time was unchanged, but the SEC filing says he “submitted updated financing commitment letters in support” of his bid.
According to the document, representatives from United and Raine, the US brokers running the process, held meetings and teleconferences regarding Sheikh Jassim’s offer throughout May last year, urging them to review their proposals and provide proof of financing.
But an improved deal presented on May 16 that valued United at $30.01 per share, valuing it at $4.9bn (£3.9bn) excluding debt, also failed to provide any evidence of where the money had come from.
Six days later, the Glazers made a counter-offer to Sheikh Jassim, stating that “a price of $35.25 per common share would be considered.” This would value the club at £4.55bn.
At the May 25 board meeting, it was decided that the club would “continue to seek better value for shareholders” and “request that Bidder A provide sufficient evidence of the financing resources required to complete such a transaction.”
The SEC filing shows that Sheikh Jassim on June 1 last year made a better offer of $5.20 per A share, valuing it at $34 per Class B share and $24.81 per A share, which had 10 times the voting rights of Class A shares. He reveals that he did more than this was offered two weeks ago. “Again, this revised proposal did not include customary financing commitment letters,” the document states.
At this stage United also made it clear to the club’s bidders that any offer would require A shares to be valued at the same price as B shares. United and its executives were concerned about threats of legal action from A shareholders who felt the deal was at risk of being terminated.
Discussions about Qatar’s offer continued between June and August, including further requests to provide evidence of financing. 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 shares at the same price as B shares.
Further talks took place until October 6 last year, including discussions in late September when the Qataris told Raine they were “still preparing to present a revised offer”.
However, on 15 October, Sheikh Jassim’s bid informed United that they were “officially withdrawing” from the process.
Meanwhile, Ratcliffe had revised his offer for a 25 per cent stake in a deal that valued both Class A and B shares at $33 per share and promised an additional investment of $300 million (£237 million) in the club.
But as talks dragged on in November and December, Ratcliffe, fed up with delays, issued the club an ultimatum, warning that he would leave altogether if his offer was not accepted by the Christmas Day deadline.
This led to a “robust discussion” at an informal meeting of United’s board on 22 December, before the deal was approved at a board meeting two days later.