Portuguese wealth management firm ready to pump £2.5 million into Inverness Caley Thistle if investment talks succeed
Portuguese investors are ready to pump £2.5 million into Caley Thistle if a deal can be struck.
It is understood the wealth management company, with a base in Lisbon but multiple international offices and footballing interests, has provided a letter of intent detailing that cash sum to the Inverness club’s representatives.
But with Monday’s game-changing agreement to wipe out over £3 million in loan debt meaning some individuals were compensated with new share equity, it is by no means certain the Portuguese interest, at that price, would secure outright control of the club.
Caley Thistle representatives initially indicated they would fly out to meet their Portuguese suitors on Monday next week.
That could now be delayed by a matter of days, with past chairman Alan Savage - the man leading the club’s recovery from the brink of administration - keen to firm up legal provenance of the club’s rejuvenated financial footing.
Gaining that legal clarity on the club’s dramatically improved financial status could act as encouragement to investors, and would place Caley Thistle in the strongest possible negotiating position entering talks.
It also means the Portuguese party has an altered financial picture to consider in any bid.
Some breathing space is now needed for the club and potential investors to consider the full implications of Monday’s dramatic events.
Gordon Ritchie, head of GRM Marketing, the firm recruited by Mr Savage to find a club buyer, said: “We said we would go over to see the Portuguese interest as early as Monday and that was the intention.
“We now need to get clarity legally on all of these loans. That’s got to be put in place.
“We have spoken to the Portuguese extensively and we are now, after Monday’s landmark meeting, tightening up the financials and Alan Savage, Charlie Christie and the accounts team are looking under every stone.
“Alan is coming back to me with the figures and we’re going to get the figures over to Portugal.
“We want to give them the numbers and give them three or four days to come back with questions, before we sit down and talk about the investment.
“Without the financial numbers, it would be a case of going over for a cup of coffee and chat about football.
“My preference would be to persuade them to come over here to Inverness, but otherwise either Alan and I, or myself alone, will hopefully fly out at some stage later next week.”
Mr Ritchie would not name the company involved but believes they are capable of placing the club in a healthy position moving forward, with the potential to “take the Caley Thistle to another level.”
But he stressed the delicate nature of the current position, with shareholders such as past chairman Ross Morrison to consider. Mr Morrison gave the club a massive boost by converting a £2.1 million loan debt into shares and will be kept fully in the picture.
Mr Ritchie added: “The finances of the club have to be organised and valued to clear, with no surprises.
“The investors are interested and we have written confirmation. We are talking to them every day and as soon as Alan and the board are 100 per cent confident, we will be meeting in Portugal and Inverness.”
The Portuguese company already has footballing interests in Portugal, Italy, Spain and Brazil, as well as other parts of Latin America, and have a strong interest in developing young players.
A triangulation formula using loan deals for young talents is part of their ethos, raising the possibility of young Brazilian or Portuguese players pulling on the Caley Thistle jersey.
It is understood four serious investors have expressed interest in Caley Thistle, but that one of them - a Chinese company - has been forced to withdraw, with the China state government placing restrictions on investing in and purchasing clubs in the UK.
While there is urgency in the club’s intent to speak to investors, hammering out a deal could realistically take up to a month.
Mr Ritchie stressed: “The beauty is the club is no longer at the edge of the precipice - that threat is no longer there.
“But we do need to act quickly and professionally to make sure that we do not lose out on potential investment opportunities.”
It is understood Windsor-based businessman Ketan Makwana, unlike the other four potential investors, had provided no proof of funds to Caley Thistle.
Meanwhile, Mr Savage has told manager Duncan Ferguson he is now prepared to fund a small number of signings in the short-term to bolster his squad before the transfer window closes at the end of this month.