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Olympique Lyonnais owner OL Groupe announced the signing of an agreement with Chinese investment firm IDG Capital Partners that “will allow the firm to purchase a 20% stake in OL Groupe” for €100M ($111M), according to François Guttin-Lombard of LE PROGRÈS. The agreement also provides a “joint-venture between OL Group and IDG with the objective to promote the notoriety of OL and to enhance its brand in China.” The investment will be made “in the form of new shares created for IDG (representing 20% of total capital) and convertible bonds.” The stake was done on the basis of a €400M ($447M) “valuation of OL Groupe before the investment” and €500M ($558M) post-investment. IDG will have a two-year “retention commitment from its subscription for shares and convertible bonds and will have either two or three seats on the OL Groupe board (depending on the size of the board).” In a statement released on Friday by the club, OL Groupe plans to use a “substantial part of the investment to refinance its debt and reduce its interest expenses.” OL Groupe General Dir & President Jean-Michel Aulas said, “The capital and operational merger with IDG is a milestone in the growth of OLG and its positioning as one of the most ambitious European players in European football” (
LE PROGRÈS, 8/13).
SEARCH IS OVER: In Paris, Yves Leroy reported Aulas said, “We have been searching a longtime for investors. … We will define a development strategy for the whole of Asia.” OL and IDG will “create a joint-venture for marketing the club and establish academies in China, Hong Kong, Macau and Taiwan.” Aulas: “The goal is not to use this money on the transfer market. At least not this year. The goal is to completely refinance the stadium and to have an extremely presentable level of debt. With this deal we will improve our operations account. We were €265 million ($295M) in debt, and that will fall to €165 million ($184M). With a 7 percent interest rate, that means saving €7million ($8M) per year.” Aulas, who routinely critiques the Qatari funds of Paris St. Germain, “said that the two financial flows are not comparable.” He said, “It is not the same. Financing from Qatari-state funds is at odds with the liberal economy of the Ligue 1 championship in France. Here, we are in a capitalistic investment. It’s the real economy that will endure, not virtual” (LE PARISIEN, 8/13).
