|By Arabian Post Staff| Sheikh Mansour bin Zayed Al Nahyan’s City Football Group (CFG), which owns a number football related clubs and businesses, including Manchester City FC, New York City FC, Melbourne City FC, and a minority stake in Yokohama F. Marinos, has announced a partnership with a consortium of high profile Chinese institutional investors to create an unprecedented platform for the growth of CFG clubs and companies in China and internationally.
The Chinese consortium is led by China’s leading media, entertainment, sports and Internet dedicated investment and operating company China Media Capital Holdings.
The agreement will see the consortium of CMC Holdings and CITIC Capital invest US$400 million to take a shareholding in City Football Group of just over 13 percent. The deal values the group at US$3 billion. The agreement is subject to regulatory approval in some territories.
The announcement follows more than six months of discussions among the parties to find the optimum model and associated strategies for the partnership. 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 deal will see new shares issued in City Football Group in addition to the ones held by the Abu Dhabi United Group (ADUG), the investment and development company privately owned by Sheikh Mansour bin Zayed Al Nahyan, and prior to this transaction the sole shareholder of City Football Group.
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.