Bahrain-based fund InvestCorp are set to appoint a major global bank as a financial advisor as their interest in forming a consortium capable of buying Inter from current owners Suning heats up.
This according to today’s print edition of Italian business newspaper Il Sole 24 Ore, via Calcio e Finanza, who report that the Bahrain-based fund’s work is ongoing as they are seriously studying how to move forward towards taking over the Nerazzurri.
InvestCorp, who had already been linked with an interest in purchasing Inter in the fall, have been reported to be reigniting their interest over the past week or so.
InvestCorp are reportedly keen to have up to $654 million USD ready when they arrive to attempt to take over the Nerazzurri from Suning.
According to Il Sole 24 Ore, the Bahrain-based fund are now taking the next steps, which include appointing a financial advisor for the process.
The business newspaper report that InvestCorp will soon be consulting with a major international finance bank as they start to firm up the details of their consortium to present an offer to Suning.
The newspaper also provides details on how the fund has arrived at the valuation of their anticipated offer to Suning.
It has already been reported that the looming due date of the Oaktree loan is a major factor that could push the current Nerazzurri owners to sell.
Il Sole 24 Ore go into further detail in explaining why the debt position of the club is a major factor in the analysis that has led InvestCorp to arrive at a target of €500 million to €600 million in equity as far as their offer to Suning.
The newspaper notes that Inter’s current debt bond is €415 million, with that bond having been issued early last year and expiring in 2027.
This is factored into InvestCorp’s valuation of a deal for the Nerazzurri, particularly in light of the situation with the Oaktree loan.
The loan, which Suning took on in 2021 in order to inject operating liquidity into the club amid post-pandemic financial issues, was for €275 million.
With the interest rates, the Inter owners must pay a total of €350 million to the US-based fund in the next thirteen months, and if they are to fail to do so then control of the Nerazzurri will pass over into the hands of Oaktree, considering that the club was put up as collateral.
According to Il Sole 24 Ore, whilst current Inter President Steven Zhang had explored the possibility of refinancing the loan, the situation with interest rates would make doing so very difficult.
Accordingly, the alternative for Zhang and Suning would appear to be to sell the club, something which has long been the subject of persistent rumours but which the current owners have not yet done.
The newspaper reports that InvestCorp have factored this aspect of the club’s debt position into their valuation, and that this is how they’ve arrived at a potential offer which they anticipate can be enough to convince Suning to sell the Nerazzurri.