Chinese investors have snapped up a 13% stake in Premier League leaders Manchester City for $400m (£265m).

The deal has valued City Football Group (CFG), owners of Manchester City, at $3bn.

CFG is owned by Sheikh Mansour of the Abu Dhabi royal family. The royal family also own New York City FC, Melbourne City FC and Yokohama Marinos.

Khaldoon Al Mubarak, chairman, CFG, 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.”

A statement on City’s website said: “City Football Group today announced a partnership with a consortium of high profile Chinese institutional investors led by China’s leading media, entertainment, sports and internet dedicated investment and operating company CMC (China Media Capital) Holdings.

“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.”