The need to raise capital from investors could hinter the efforts of InvestCorp to buy Inter Milan from Suning.
This according to today’s print edition of Rome-based newspaper Corriere dello Sport, via FCInterNews. They note that because the Bahrain-based fund is a private equity fund, they will have to convince investors to complete a deal at a high valuation.
The rumours are now flying.
Reportedly, Bahrain-based investment fund InvestCorp are preparing to make a big offer to buy Inter from Suning.,
This is far from the first time that there have been links between InvestCorp and Suning.
Far from it, there have been reports of interest for months. In April, InvestCorp looked to be fundraising to try and make an offer.
And now, if recent rumours are to be believed, the fund has indicated that they are willing to bid €1.3 billion to buy Inter. This amount would well exceed the €1 billion benchmark that Inter owners Suning have reportedly set.
It would also be more than the €1.2 billion that RedBird capital paid to acquire AC Milan.
There are even rumours that InvestCorp are already doing due diligence on a purchase of a takeover. This would, however, have to come after making a formal offer.
Why It Could Be Tough For InvestCorp To Buy Inter Milan From Suning
The Corriere name one major factor that would raise doubts on InvestCorp’s ability to purchase Inter.
That is the problem of convincing investors to complete a takeover at a high valuation.
At the moment, a key aspect of Inter’s situation is the looming deadline of a massive loan that owners Suning took on from US-based fund Oaktree Capital.
The fact remains that Suning put Inter up as collateral for that loan. Therefore, if the Nerazzurri owners do not either pay it back including interest by next May or refinance, then control of the club would pass into the hands of Oaktree at that point.
This is obviously a factor that could motivate the current Inter owners to sell the club.
But it is also something that would potentially make buying Inter at a very high valuation seem irrational.
InvestCorp is a private equity fund rather than a sovereign wealth fund. This means that the Bahrain-based fund must convinced investors on any deal.
The fund could see buying Inter at a valuation of €1.3 billion as logical if it means purchasing an asset with massive potential value, and doing so ahead of any potential competition.
But for potential investors, they may not see it the same way. Other investors could balk at the idea of paying that much to buy Inter when there is so much potential leverage over the club’s financially embattled owners.
Meanwhile, investors may well know that Inter could be up for sale by Oaktree in less than twelve months’ time.