Stefan Borson shares Sheikh Mansour update after confirmed £210m Man City news

Manchester City majority owner Sheikh Mansour has likely seen his stake diluted after £210million has been invested in the form of a new share issue.

That is the view of former Man City financial adviser Stefan Borson, who exclusively told Football Insider Silver Lake is likely to be behind the new investment.

A Companies House submission on 29 November confirmed City Football Group (CFG) – Man City’s parent company – has issued almost 24 million A Preference Shares, totalling around £210million.

It isn’t the only investment CFG has made of this nature over the past few months after it also issued £210million of A Preference Shares in June.

Borson previously told Football Insider he believes Silver Lake, which is the only shareholder with A Preference Shares, was the likely party behind that investment.

The American firm initially bought a 10 per cent stake in CFG in 2019, but it has since increased its shareholding to 18.1 per cent, while the Abu Dhabi United Group owns 78.7 per cent.

The latest injection comes at a time when Man City are spending £300million to expand their stadium, with a new third tier on top of the Etihad’s North Stand set to take the capacity to more than 60,000.

Man City ownership group set for change after new investment

“CFG as a whole doesn’t make the money to pay for the ongoing infrastructure projects,” Borson told Football Insider.

“They would either have to raise debt and they have got quite a lot of debt already within the CFG, or they would have to take the money from the existing shareholders or new shareholders.

“It looks like what they have done is taken money from Silver Lake. Silver Lake are the only party historically that have had A Preference Shares.

“They will do a return on Companies House in January and we will find out exactly what the latest shareholder list is.

“But it’s likely that Silver Lake have put more money in.

“If Silver Lake have put more money in, that will dilute everybody else’s shareholdings, so Sheikh Mansour’s vehicle will be diluted and the other shareholders.

“I think Silver Lake will go to very close to 25 per cent of the group.

“The interesting question is whether the rest of the shareholders are below 75 per cent, so are Silver Lake over 25 per cent because it gives you certain special resolutions that are passed under English company law.”

In other news, Man City superstar moaning to teammates about club’s hotels and food.

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The post Stefan Borson shares Sheikh Mansour update after confirmed £210m Man City news appeared first on Football Insider.