Suning Commerce Group’s $307 million bid for FC Internazionale Milan will secure the company a 70 per cent stake in the club, and is the first major play for a controlling stake in a top European football team by a Chinese company. In 2013, Indonesian consortium International Sports Capital led by businessman and now Inter Milan president Erick Thohir acquired a 70 per cent controlling stake in the club from Internazionale Holding. Following the deal, the ISC consortium will become the sole minority shareholder in Inter Milan with a 30 per cent stake and Mr Thohir will retain his position as the club’s president. Internazionale Holding and its owner, Italian oil tycoon and former Inter Milan president Massimo Moratti, will end their formal association with the club once the deal is concluded.
Law firms advise
Beijing-based firm Jingtian & Gocheng was appointed as Suning’s primary legal advisor for the deal, while Slaughter and May best-friend firm Bonelli Erede Pappalardo was instructed to provide local law advice in Italy. A team from Latham & Watkins headed by Singapore finance head Timothy Ha and including Milan-based corporate head Stefano Sciolla provided advice to International Sports Capital throughout the transaction. Incumbent shareholder Internazionale Holding sought advice from longtime go-to firm Cleary Gottlieb Steen & Hamilton.
China sets sights on soccer
The deal is the latest and most significant example of China’s growing interest in ‘the world’s game’ since the election of self-professed soccer fan President Xi Jinping in 2012. A consortium of Chinese companies recently announced its intention to purchase 13 per cent minority stake in Premier League club Manchester City parent company City Football Group for a whopping $400 million after President Xi paid a visit to the club last year. Meanwhile, recently downgraded second-tier British club Aston Villa was recently purchased by Chinese businessman Tony Jiantong Xia for around $109 million.
Sources: Wall Street Journal; The Lawyer
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