Gerry Cardinale returned to the United States after signing the takeover deal last week and is not expected in Italy before the end of June.
According to Franco Ordine for MilanNews, the leader of RedBird Capital is currently at work collecting investments in view of the completion of the closing. The structure of the operation was as follows: €600m paid immediately and €600m received as a loan from the seller (very common practice for acquisitions of that size).
Elliott Management will charge an interest rate on the loan of 6% and not 15% as reported by some sources, and what the structure essentially means is that in the worst case scenario Milan would return to being owned by Elliott.
The media effect of the new acquisition had an immediate response as RedBird have collected another €300m from investors and a further €100m will arrive before the September date set for the official transfer of the shares.
This means that only €200m of the financing obtained from Elliott will remain ‘uncovered’, with no investment bank involved. Good news for the future of Milan.
They are serious buyers….lol…..they want to fall victim like the Chinese….😂
*they don’t*
What is good here? Instead from bank, he borrow money from other people. I doubt he got that money without interest. Still, almost 1/3 of ACM is in Elliot possesion. From who, he is going to borrow for stadium?
Mikele, it isn’t borrowed money, it’s invested as equity by investors. Yes, they expect to receive returns on their investment; but it’s not a loan.
Probably not worth trying to explain to you if you don’t understand the difference already…