Investcorp and Elliott Management are continuing their negotiations over the sale of the club and the Bahrain fund are ready to invest around €1.2bn to buy Milan.
According to Il Sole 24 Ore (via MilanNews), the due diligence process has now been completed and no critical issues emerged, so the two parties are now discussing the financial structure of the operation which should be divided as follows: €800m equity (therefore Investcorp’s own resources) and €400m that will come from a bank-type bridging loan.
The latest development is the possible presence of the American financial group Ares Capital in the share reorganisation of Milan. Of the 800 million of equity, it is rumoured that about half would be ‘preferred equity’ – a hybrid instrument that would be granted by a financial group such as Ares Capital.
Then, the other €400m would be provided by the historical investors of Investcorp, in majority families and family funds of the Persian Gulf area. There is a well-defined strategy behind this move: once the acquisition is completed and has become the new owner, it would aim to subsequently replace the position of Ares Capital with capital from its subscribers.