06 February 2024 , 13:44
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Sir Jim Ratcliffe’s £1.25bn purchase of a 25 per cent stake in Manchester United has taken another step towards completion.
A new filing with the SEC in the United States has shown that an extraordinary general meeting was held on Monday which approved a special resolution that will see the Class B shares purchased by Ratcliffe’s INEOS corporation carry enhanced voting powers.
A vote took place to approve a special resolution that will see “a new amended and restated memorandum and articles of association to, among other things, provide for certain transfers of Class B ordinary shares without conversion of such shares into Class A ordinary shares.”
Typically Class A shares are those owned by majority owners of a company, carrying more voting power with the benefits of claiming premium dividends, with Class B shares ordinarily available on stock markets.
When the investment was announced on Christmas Eve, United said that INEOS “will acquire 25 per cent of Manchester United’s Class B shares and up to 25 per cent of Manchester United’s Class A shares.”
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But INEOS requested the Class B shares they have purchased will carry additional decision-making powers to ordinary shares.
The SEC filing showed that at yesterday’s vote those in possession of 98.2% of the total shares were present and overwhelmingly approved the proposal to change.
While it may seem like dry procedural language, the vote was a necessary step before the deal is officially ratified.
INEOS, who will be in sole charge of the club’s footballing operations, have already set to work on planning around United’s future and are looking at ways to redevelop Old Trafford.
Sir Dave Brailsford alongside Sir Jim Ratcliffe during United's Premier League game against Tottenham last month. (PA)While Ratcliffe is the company’s figurehead, former British Cycling chief Sir Dave Brailsford will have a key role in making major decisions. He has already been to several games in the past six weeks.
Ratcliffe has also held meetings with key members of staff, including head coach Erik ten Hag, and briefly met the media last month.
After agreeing the deal, he said: “Whilst the commercial success of the club has ensured there have always been available funds to win trophies at the highest level, this potential has not been fully unlocked in recent times.
“We will bring the global knowledge, expertise and talent from the wider INEOS Sport group to help drive further improvement at the Club, while also providing funds intended to enable future investment into Old Trafford.”