Tuesday 1 December 2015 14:34, UK
Manchester City's parent company have announced a deal which will see a consortium of Chinese institutional investors take a stake of just over 13 per cent in the group.
The consortium of CMC (China Media Capital) Holdings and CITIC Capital are to invest £265m (US$400m) in City Football Group, the holding company which oversees Manchester City and their affiliated clubs, which include Melbourne City and New York City.
The deal, which is subject to regulatory approval in some territories, values the group at almost £2bn ($3bn) in total.
The deal sees new shares issued in CFG in addition to those owned by the Abu Dhabi United Group (ADUG), the investment and development company privately owned by Sheikh Mansour of the Abu Dhabi royal family. Prior to the investment, ADUG was the sole shareholder of CFG.
A statement on the Manchester City website read: "The deal will create an unprecedented platform for the growth of CFG clubs and companies in China and internationally, borne out of CFG's ability to provide a wealth of industry expertise and resources to the rapidly developing Chinese football industry.
"The capital from the share acquisition will be used by City Football Group to fund its China growth, further CFG international business expansion opportunities and further develop CFG infrastructure assets."
In China, the exponential growth pathway for [football] is both unique and hugely exciting.
The chairman of City Football Group, Khaldoon Al Mubarak, said: "Football is the most loved, played and watched sport in the world and, in China, the exponential growth pathway for the game is both unique and hugely exciting.
"Our partners have an incredible track record of creating value and could not be better placed to help us further evolve City Football Group."
As part of the deal, CMC Chairman Ruigang Li will become a member of the City Football Group Holding Company Board.
He said: "Football is now at a fascinating and critical stage of development in China.
"With its unique business model and distinct successes, City Football Group, whom we have come to know well, represents a differentiated systematic approach to building a global platform for football know-how, player development, academy programmes and commercial partnerships, that will benefit China's football industry on multiple levels."
