Investcorp seem to have cooled their interest in purchasing AC Milan from Elliott Management after competition from RedBird. ‘Let’s leave aside any AC Milan deal for now…’
The Bahrain-based investment company had generally not been involved in sport until now, so their takeover bid for the Serie A side at a cost of €1.1bn raised eyebrows.
That had seemed to be on the verge of completion when problems arose and a new offer came in from RedBird, who are connected to Premier League giants Liverpool as well as other sporting ventures in the USA.
Gulfnews.com spoke to Investcorp Co-CEO Rishi Kapoor to ask about the state of play with the Milan takeover and what this means for the bigger picture of their portfolio going forward. Is it a done deal?
“At this stage, it’s not possible to comment. But it’s a fact that Investcorp hasn’t had any direct exposure to sporting franchises anywhere. What we do have is an investment in United Talent Agency in the US, which apart from entertainers and artists also represents and works closely with sports personalities.
“Through United Talent Agency, we do have a pretty strong appreciation and understanding of how the business operates in the US. And sports is a key component of the entertainment market today.
“Let’s leave aside any AC Milan deal for now…”
Multiple reports in Italy and elsewhere have suggested RedBird have the upper hand because of their experience in sports franchises.
They are also proposing €1bn in equity, whereas Investcorp would cover some of the takeover bid with loans, something that worried Elliott Management.
After all, Elliott came to own Milan after previous owner Yonghong Li defaulted on loan repayments to them.