RedBird Capital are now a serious contender in the race to buy AC Milan from Elliott Management. After initially coming in lower than Investcorp, they have now matched the offer and also added a bonus to it.
Investcorp seemed destined to take over Milan after completing due diligence and putting €1.1bn on the plate for Elliott. However, the situation has taken a turn since the emergence of RedBird Capital, the US-based investment firm.
As reported by today’s edition of Tuttosport (via MilanNews), RedBird have matched Investcorp’s offer of €1.1bn after initially coming in lower. Furthermore, as an added bonus, none of the €1.1bn will be financed by a loan.
This is an important signal from RedBird to Elliott, as the latter decided to put the brakes on the Investcorp negotiations due to the loan structure of the offer. In fact, Investcorp intended to finance roughly €400m of their offer with a loan. RedBird, therefore, could now take over pole position in the race.