June 9, 2023

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Il Sole 24 Ore – Milan-Investcorp, this is the financial structure of the operation: equity of 800 million and loans for 400 million

We may have reached the crucial stage of negotiations between Elliott and Investcorp to buy the latter for Milan for around €1.2 billion. As the days go by, more and more details are emerging about this, particularly regarding the financial structure of the operation: on the matter, Il Sole 24 Ore reported on newsstands this morning that according to some rumors, the Bahrain Fund will be ready. To put about 800 million euros of private resources on the table for the acquisition of the Rossoneri club, while another 400 million will be the result of various forms of financing, including bank “financing” with a group made up of Goldman Sachs and JPMorgan. Behind Investcorp, who will be a third-party capital manager, there are several investors and families from the Persian Gulf and family offices from the same geographic area that have been part of this fund for years. Then the well-known economic journal explains that out of the 800 million “capital”, about 70%, and therefore approximately 600 million, will be the so-called “permanent capital” resources, that is, money for investment with a longer time horizon (we are talking about ten years) .

Waiting for signature Once the due diligence, i.e. the analysis of AC Milan’s accounts, is completed, the next step is to sign, which was already expected at the end of last week, but it will be necessary to wait a few more days. This is because “there will be some valuation problems, in terms of the value of the project, which would eventually have risen from 1.1 billion to about 1.2 billion euros. Under study there will be some balance sheet items, related to different debts. Type, including business analyzes The analysis will be essential for Investcorp to determine the exact amount of equity required.”

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