Suning In Talks With BC Partners, EQT & Arctos Sports To Sell Some Or All Of Stake At Inter, UK Media Reports

Suning In Talks With BC Partners, EQT & Arctos Sports To Sell Some Or All Of Stake At Inter, UK Media Reports
January 14, 2021 18:20
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Inter’s owners Suning are in talks with multiple buyout groups over the potential sale of the club, according to a British media report.

British investment firm BC Partners have been strongly linked with a deal to become shareholders at Inter for the past fortnight, with reports in Italy this morning saying they could become owners in the coming weeks.

As per the Financial Times, however, the Chinese retail giants are also in talks with two other private equity funds, namely Swedish group EQT and US-based Arctos Sports Partners.

According to the report Suning could sell a minority or indeed all of their stake at Inter, which confirms reports across Italy this week which have suggested both options are very much on the table.

The Financial Times report says they value Inter in the region of €900 million, according to someone close to discussions, and Suning have hired Goldman Sachs to advise on potential fundraising options.

Suning spent €270 million to buy Inter in 2016 and have invested hundreds of millions into the club.

They have also announced plans in tandem with AC Milan for a new stadium project which is expected to cost a staggering €1.3 billion.

However, there are concerns about liquidity at Suning’s main business back in China, while Inter have posted a loss of €102 million in the last financial year, with finances hit heavily by the COVID-19 pandemic.

Suning have therefore been led to seek fresh outside investment into Inter, where they own a 68.5% stake.

It remains unclear whether Hong Kong based LionRock Capital, who own the remaining shares, are looking to sell their stake as well.

The report concludes that Suning, Inter, LionRock and BC Partners have not immediately responded to request for comment whilst Arctos, EQT and Goldman Sachs all declined to comment.

By Cammy Anderson
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