UAE- CMC led consortium set to invest 400 million in Manchester City

Date

12/1/2015 11:10:59 PM

(MENAFN- Khaleej Times)

A Chinese consortium led by China Media Capital Holdings or CMC is investing $400 million in the Abu Dhabi-based company that owns Manchester City Football club the top-ranked English Premier League team.

CMC a Shanghai-based private equity fund that owns the broadcast rights to the Chinese Super League is teaming up with CITIC Capital Holdings to buy 13 per cent of City Football Group which also owns New York City Football Club and Melbourne City Football Club according to a statement on Tuesday. The deal values City Football at $3 billion.

The deal was announced just weeks after Chinese President Xi Jinping visited Manchester City's training ground where he posed for a selfie with Argentine star player Sergio Aguero and UK Prime Minister David Cameron.

"Football is now at a fascinating and critical stage of development in China" Li said in the statement. "We see unprecedented growth opportunities in both its development as an industry being China's most watched sport and its inspirational role bringing people of all ages together with a shared passion."

The deal will see new shares issued in City Football Group in addition to the ones held by the Abu Dhabi United Group the investment and development company privately owned by Shaikh Mansour bin Zayed Al Nahyan Deputy Prime Minister and Minister for Presidential Affairs and prior to this transaction the sole shareholder of City Football Group.

CMC will represent the consortium at Board level with Mr. Ruigang Li the Chairman of CMC becoming a member of the City Football Group Holding Company Board - which as a result of the agreement will increase from six to seven members.

Speaking about the partnership Khaldoon Al Mubarak chairman of City Football Group 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. "We have therefore worked hard to find the right partners and to create the right deal structure to leverage the incredible potential that exists in China both for CFG and for football at large."

"Our partners have an incredible track record of creating value and could not be better placed to help us further evolve City Football Group. Our belief is that we now have an unrivalled platform to grow CFG our clubs and companies both in China and internationally and we will be working hard with our new partners to realise the potential that this deal creates" he said.

- With inputs from Bloomberg

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