A consortium of Chinese investors is investing $400 million to take a stake of more than 13 per cent in the group that owns football clubs including Manchester City and New York City FC.
The consortium includes CMC Holdings and CITIC Capital and the deal values the City Football Group at $3 billion, City Football Group said in a statement on Tuesday.
As part of the deal, new shares will be issued in City Football Group in addition to ones owned by Sheikh Mansour bin Zayed’s Abu Dhabi United Group.
City Football Group, which is also the owner of Melbourne City FC and is a minority shareholder in Yokohama F Marinos, is wholly owned by Abu Dhabi United Group.
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”, the statement said.
CMC will represent the consortium at board level with 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.
“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,” said Khaldoon Al Mubarak, chairman of City Football Group.
“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.”
* with agencies
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