Bain Capital & Oaktree Battling To Agree Inter Financing Deal With Suning, Italian Media Report

May 14, 2021 12:30
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Inter are heading into the final stretch of their quest to find fresh investment, according to a report in the Italian media today.

As per Tuttosport’s print edition, the Nerazzurri are expected to secure the money they need to sort their short-term finances within the next couple of weeks.

Bain Capital and Oaktree are battling it out to secure a deal with Suning, who need the investment so they can pay outstanding salaries and meet other deadlines before planning next season.

The two US-based investment firms have different ideas for how they want to help Inter, though, which is adding an extra layer of intrigue and delaying negotiations a little further.

According to the Turin-based paper, Oaktree would be eager to become Inter’s new owners within a relatively short space of time, and this is the key sticking point in talks with Suning.

Suning are playing for time because they don’t want to lose control of Inter, instead hoping to secure a big loan which can keep them going until their financial situation improves.

Oaktree would offer up to €300 million and this would help Suning buy out LionRock Capital’s 31.05% stake in the club without any trouble – but Inter’s owners aren’t willing to put their future with the club at risk as part of the deal.

Bain Capital, meanwhile, are offering €270 million and seem happy to simply offer a loan deal for the time being, although they too would take over at Inter if Suning couldn’t repay the loan (like Elliott did with AC Milan in 2018).

The two key issues for Bain Capital and Oaktree during negotiations are how quickly they can take over Inter and what they make of Inter’s nebulous sponsorship arrangements in China.

Suning are dragging out negotiations as long as possible as they seek to secure the best possible conditions, but time is running out and very soon they will need to make a decision which is in the best interests of Inter.

 

By Will Beckman
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