IDG Capital Partners, a Chinese investment fund, has agreed to acquire a 20% stake in French soccer club Olympique Lyonnais (OL).
According to various reports, IDG is set to invest €100 million in buying shares and convertible bonds of the club owner, the OL Group. In addition, a substantial part of the investment will be used to reduce debt so as to cut the corresponding financing costs and enable the group to refinance its debt.
Under this deal, the Chinese invetment fund has promised to hold the group's shares for at least two years. It will get two to three seats on the OL Group's board.
The two sides are looking to set up a a joint venture in China to grow the club's presence and to bring its advanced youth training system to the country. IDG will hold a 55% stake in the venture and OL Group will take the remainder.
Source: Global Times
Proofread by Sean O Diobhilin