Benfica rejected a $100 million offer from US fund Entrepreneur Equity Partners (EEP) for a 16.38% stake in the club's SAD (Sociedade Anónima Desportiva), owned by José António dos Santos, also known as "Rei dos Frangos" (King of Chickens). The club confirmed it would not admit EEP into Benfica SAD, effectively ending talks. This decision came after a pre-agreement between EEP, Grupo Valouro (Santos's family poultry producer), and Santos in April, which had valued the stake at approximately $10 to $11 per share, a 70% premium over the prior day's close of $6.46.
Benfica's vice-president and financial administrator, Nuno Catarino, explained in an interview that the club had engaged in a due diligence process after being notified of the intention to sell. The primary concerns revolved around potential clashes with Benfica SAD's statutes, particularly EEP's stated aim to hold minority stakes in other European clubs. Benfica communicated its "statutory themes" and concerns to EEP, leading the US fund to ultimately withdraw its offer, as it determined it would be difficult to comply with the rules.
Despite the failed deal with EEP, José António dos Santos maintains his intention to sell his 16.38% holding, which remains on the market for prospective investors. Benfica, while open to potentially acquiring the stake itself, would only do so at "market prices." Catarino noted that Santos's valuation of the stake appears to be higher than what the club would consider market value, making a direct purchase by Benfica challenging without triggering a mandatory tender offer (OPA) that would require an estimated $100 million.
Catarino indicated that while the club's inherent value, especially considering its associative matrix, is difficult to quantify, a traditional valuation of Benfica would likely place it above $1 billion. He also highlighted the differing perspectives of US investors, who often focus on real estate potential and entertainment aspects, sometimes viewing the football itself as a non-profitable component. The club emphasized that its strength lies in its associativism and commitment to various sports, which are not easily captured by standard financial metrics.
