Inter Investors Oaktree Capital Aiming To Eventually Replace Suning As Owners, Italian Media Claim

Inter Investors Oaktree Capital Aiming To Eventually Replace Suning As Owners, Italian Media Claim
May 20, 2021 13:45
( )

Inter’s financing deal between Suning and Oaktree Capital could eventually lead to a change of ownership, according to a report in the Italian media today.

As per Corriere dello Sport’s print edition, Oaktree Capital are specialists in ‘Loan & Own’ deals and their aim therefore is to take control of the club in the long term.

The Los Angeles-based private equity fund are already one of the main underwriters of the bonds issued to Suning for Inter, worth a combined €375 million.

What’s more, they will have the power to veto any operations carried out at Inter which exceed a certain value, giving them a certain degree of influence over Suning’s decisions.

One of the biggest questions over Oaktree Capital’s €275 million deal with Suning, the Rome-based paper explained, is how much of that money will be put towards buying out LionRock Capital’s shares in Inter.

The Hong Kong-based fund have a 31.05% stake worth €166 million, but €133 million was loaned to them from Suning when they joined Inter in the first place.

If Oaktree Capital only needed to use €33 million to liquidate their shares, this would mean they could put the rest of that €275 million towards other needs at Inter.

CdS said they were certainly unlikely to use up €166 million just to replace LionRock Capital, as that would mean giving Inter an overall valuation of €900 million including debts.

Oaktree Capital have received Suning’s 68.55% stake at Inter as collateral in the parties’ deal, meaning they would become the Nerazzurri’s new owners if Suning failed to repay the money within three years.

This would be a repeat of what happened at AC Milan in 2018, the report explained, when Yonghong Li defaulted on a loan and lost control of the club to Elliott Management.

By Will Beckman
Close

Subscribe

to our newsletter