[ad_1]
Chinese owners of Inter Milan rush to raise at least $ 200 million in emergency cash, after the Italian football club’s financial situation deteriorates due to the outbreak and massive spending on the best players.
Suning Holdings, the Chinese retailer which has a majority stake in Premier League squad, Serie A, is seeking new investment by the end of the year in response to a financial crisis at the club, according to three people familiar with its finances.
Sunning’s challenges with Inter Milan come at a time when the “Alibaba”-backed retailer faces questions over its heavy debt load in China.
The club had exclusive discussions with private equity group BC Partners in recent weeks over a possible investment, but those talks ended after the two sides were unable to come together. agreed on valuation, according to the “Financial Times” and seen by “Al Arabiya.net”.
The Nerazzurri – Inter Milan’s title – have faced a cash flow crunch over the past year as the club suffered pre-tax losses of € 102m last season due to a lack of income caused by the pandemic.
The owner hesitated
Meanwhile, Sunning faces financial pressures in his native China, which has made it difficult for the Italian club to continue funding, including the recent crackdown by Chinese authorities on capital outflows.
While Sunning was able to repay $ 1.5 billion in debt at the end of last year, its remaining debt stands at an additional $ 1.2 billion in bonds maturing this year, which is more than half of the total debt burden, according to Dealogic data.
Inter Milan fans
Potential sale
The club continues to speak to BC Partners as well as other potential investors, including distressed debt funds such as Ares Management and Fortress Investment Group, owned by Softbank, and others monitoring the situation include the group. Swedish private equity firm EQT and the American company Arctos. .
Those conversations range from discussing direct club buyouts or buying a minority stake, according to several people familiar with the ongoing discussions.
Sunning also hired global investment bank Goldman Sachs as a financial advisor to raise funds.
Dispute on evaluation
Negotiations with BC Partners failed over the club’s valuation, the sources said, with Suning estimating it to be worth more than € 900 million, or $ 1.08 billion, and two people familiar with the talks said that BC Partners estimated the value of the group at only 750 million euros.
A person close to the club’s management said Suning is committed to providing financial support to the club during this year and believes he will resort to selling a stake in the shares, even if it means suffering. a loss in his investment, rather than allowing the club. going bankrupt.
Source link
