The Suning Commerce Group

[Il Drago]

I am just wondering how the club can plan for next season with the lack of certainty around our ownership.

It's extremely hard for sure. I am guessing they're mostly focused on free signings and offloading deadwood for the time being. If the situation doesn't change come June i am expecting a similar transfer market with last summer. 0 transfer budget and 0 wage bill budget. Any moves would have to be funded from departures.

 

[CafeCordoba]

I am just wondering how the club can plan for next season with the lack of certainty around our ownership.

That's what I've been worried about.

 

[brehme1989]

There's no real planning actually.

There are contingency plans in place, but unless they're all quite similar and based on very conservative approaches, it's unlikely that we'll be able to pull off a 'best case scenario'.

It's already the time where we tend to lock up free transfers for the next season and we may miss out on opportunities here.

 

[.h.]

Order of priorities right now is the loan to sort out cashflow, then a new shirt sponsor. After that, for me, our main focus needs to be offloading deadwood. We are carrying 35m/season in amortisation budget and more than 45m/season in unwanted wage budget.

If we can free those up, then all things will be kosher. Of course we wont free all of that up, and we'll need to replace some players, but as a 'starter', it's there.


If season tickets are allowed to be sold in the summer, we get a new shirt sponsor, and we expire Kolarov, Young, sell JM, Dalbert, Lazaro, Nainggolan and Vecino, we're already profitable for next season. To a decent level. I wouldnt be surprised if we could do all those at a net 0 - JM should be 4-5m plusvalenza, Dalbert maybe 2m, Lazaro maybe - some millions, and Nainggolan maybe -2m. Vecino will be book value of 5m at the end of this season, so I'd hope for at least 5m plusvalenza on him. With some salary subsidies, net 0 is probably about right.


If it were me, I'd be structuring plans around that being the happy path, an unhappy path where we have to stomach some cost on Dalbert Lazaro and Nainggolan for next season, and then a very happy path where we get higher transfer budget because of change of ownership or whatever.

 

[CafeCordoba]

To keep these threads in order, that stuff to Financial situation thread http://forzainterforums.com/showthread.php?743-Inter-s-Financial-Situation

Thanks!

 

[Il Drago]

Ben Jacobs: Inter takeover update. Told BC Partners no longer actively pursuing a purchase. Parties close to €300m apart in valuation. BC not interested in minority stake. This leaves Suning in a tough position since urgent capital (at least €200m. Some say 250m) needed between now & May.

PIF still see no value in outright purchase given Suning want close to €1bn. & PIF are waiting to see whether #NUFC's legal case clears way for purchase at SJP. Yasir Al Rumayyan has discussed up to a 30% minority stake & (separately) sponsorship options promoting Vision 2030.

Suning's high price does pre-empt UCL football next season, so it won't rise further during the summer. But it has also been set intentionally high since Suning don't wish to sell outright. In the short-term, a Fortress loan could be their best (or even only) option.

PIF spending more time and energy assessing Inter and currently doing some due diligence. They, like BC, value Inter much lower than Suning. But they see big potential, especially if they invest in Inter & Serie A rights go to KSA. Latter is by no means certain, but possible.

The only thing working against PIF is Suning's need to find capital before end of season. PIF naturally want to capitalise if Inter win Serie A, but I am told negotiations would need to speed up significantly for anything to happen before May.

Remember also, there are strong links between Fortress & PIF. So a loan from the former wouldn't necessarily end interest from the latter. It just might buy time.

https://twitter.com/JacobsBen/status/1376832887958409220

This guys also covers Newcastle potential takeover by PIF so perhaps he has some good sources. I thought it was worth sharing.

 

[.h.]

I read somewhere one of the problem with the valuation is that Suning value inter based on curent revenues (effectively) - whereas obviously other companies are valuing against what is likely. By that I mean a number of Chinese sponsorship deals are likely to not be here anymore if we lose majority ownership by Suning, for example. Inter right now might be valued (per se) at 1 billion, but if half of our sponsorship money disappears overnight (for arguments sake) on ownership change, 750m is probably kinda generous.


Pragmatically, the best thing to do is probably take a loan, decrease costs as discussed extensively, and then focus on trying to get more 'fair' sponsorships which we then use as a basis for a potential sale going forwards

 

[CafeCordoba]

Yeah, 1 bn € is fucking ridiculous given how much debt we have and how little money this company is actually making (hint: we aren't MAKING any money quite contrary )

 

[Il Drago]

According to both GdS and Corriere della Sera, Suning are negotiating with a group of American investors who are willing to invest around 250m and probably take over Lion Rock minority stake. The possibility of a 250m loan from Fortress looks distant now. Stephen Zhang would like to remain at the helm of Inter for at least one more year.

 

[.h.]

latest rumour is Goldman are providing 240mil from CdS.

 

[PHM1605]

According to both GdS and Corriere della Sera, Suning are negotiating with a group of American investors who are willing to invest around 250m and probably take over Lion Rock minority stake. The possibility of a 250m loan from Fortress looks distant now. Stephen Zhang would like to remain at the helm of Inter for at least one more year.

Elliott?

Bring them in, Milano fight gonna be hilarious. Imagine AC Milan receive order from their owner “Boys, let Inter win, we need Scudetto to gain more sponsorship, with which I can buy you some good players”

 

[CafeCordoba]

Elliott?

 

[CafeCordoba]

latest rumour is Goldman are providing 240mil from CdS.

Wondering what are the rates for us. Definitely over 5 but wondering if they are close to 10.

 

[.h.]

the goldman thing seems to be getting traction, so i'd assume that's whats likely to happen

theres some talk of issuing new bonds to help get to 100% ownership. Not really sure what is being floated here - possibly a lveraged buy out but its really not clear from whats available out there.

 

[CafeCordoba]

If Suning acquires Inter shares from LionRock, it just means money goes from Suning to LionRock? Inter as a company, is not connected to this transaction financially. So Suning issues bonds for itself to get that LionRock minority share position. Inter do not issue any bonds.

But then again, isn't Inter having one bond which expires in 2022? It's just very confusing reporting because it feels these reports mix two different things to one.

 

[.h.]

Yeah, thats why I'm not clear.

I guess Inter could buy the shares back directly - I dont know what the rules are on treasury shares wherever our share holding is now headquartered (bear in mind that there are layers of holding vehicles here - e.g. we're probably 100% owned by a holding vehicle where lionrock and suning jointly own the vehicle, the vehicle could be registered in HK for example).


It's very confused right now.

 

[Il Drago]

Suning Attracting Interest From US Consortium For Inter Investment, Italian Media Report

Inter could soon receive new investment from the United States, according to a report in the Italian media today.

Milano Finanza’s print edition said the Nerazzurri were subject to interest from a SPAC (Special Purpose Acquisition Company) which was preparing to float itself on the Wall Street stock exchange.

SPACs are enjoying great success in the US at the moment, with 297 promoted during the first three months of 2021 alone for a combined worth of $97 billion.

This particular operation regarding Inter is reportedly being driven by an American businessman, who wants to follow the lead of some compatriots by investing in football – despite Serie A not being at its peak currently.

Back in Italy, Inter’s owners Suning are considering issuing a new bond for around €250 million, which would in part help them repay the previous bonds – worth €375 million – which are maturing in 2022.

The move would increase the Nerazzurri’s debt still further, the report explained, but it would also help solve Inter’s liquidity problems.

Suning would also use part of the €250 million bond to buy out LionRock Capital’s 31% stake at Inter.

MF said other funds such as Fortress, Oaktree and Bain Capital were still interested in getting involved at the club and could look to become minority shareholders.

Inter could seek a bridge loan worth €80 million from Goldman Sachs, meanwhile, as Suning prepare to reshuffle the club’s corporate setup in June.

 

[Barellielo]

please no

 

[brehme1989]

please no

u mad bro?

 

[Barellielo]

u mad bro?

spac daddy