Inter Investors Oaktree Capital Using Similar Strategy To Elliott With AC Milan, Italian Media Explain

Inter Investors Oaktree Capital Using Similar Strategy To Elliott With AC Milan, Italian Media Explain
May 20, 2021 20:30
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Inter could be following a similar path to AC Milan after the Nerazzurri secured fresh investment, according to a report in the Italian media today.

Suning officially announced €275 million financing deal this evening with Oaktree Capital, who are expected to buy out LionRock Capital’s 31% stake in the club (thus becoming Inter’s new minority shareholder).

As per Corriere dello Sport’s print edition, Oaktree Capital will pay €100-150 million from that sum into Inter’s accounts – not the €200 million reported by other sources – while they will use another €30 million to liquidate LionRock Capital.

They would then use the remaining money – €95-145 million – to enter Inter as a shareholder with an injection of capital, which is similar to how Elliott Management entered AC Milan.

Oaktree Capital are specialists in ‘Loan & Own’ deals and this means they are hoping to eventually replace Suning as Inter’s owners, the report explained.

Further evidence of this can be found in the shareholders agreement reached during the €275 million deal, which obliges Suning to secure Oaktree Capital’s approval for any operation which exceeds a certain financial value.

Oaktree Capital are set to have reasonable decision-making power at Inter, therefore, and they would take control of the club eventually if Suning failed to repay their debt within the agreed time frame.

By Will Beckman
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