Ineos Group creditors have been reassured that Sir Jim Ratcliffe won’t tap companies in his chemical empire to finance a planned offer for a minority stake in Manchester United.
Executives at Ineos explained to credits on Monday that funding for Manchester United wouldn’t come from the company. A report from Bloomberg claims Ratcliffe plans to use his personal wealth for any deal.
A call took place earlier this week and discussions were held about the position of Ineos in any deal that would see Ratcliffe acquire a minority stake at United.
“Management categorically stated that Quattro’s liquidity would not be available to fund the private projects of Ineos Limited’s owners,” said Jayanth Kandalam, deputy head of Europe at Lucre Analytics, who attended the call.
Bloomberg add that Ratcliffe is deal to be joined in a deal for United by Ineos shareholders Andy Currie and John Reece.
Creditors remain concerned that a deal for United would mean paying more dividends to shareholders, if additional cash is required for the investment.
“It was made very clear on the call that we will not see dividends payments for the purchase of Manchester United, which has nothing to do with Ineos Quattro,” a spokesperson said. “Any Manchester United transaction would come from sources of the owners.”
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