Americans inject 11 million euros into vehicle that invests in Benfica

Lenore Sports Partners (LSP), the financial vehicle through which Americans Jean-Marc Chapus and Elliot Hayes are investing in Benfica’s SAD, received two capital injections totalling 11.5 million euros this month, according to documents sent to the British authorities.

The information sent to Companies House, the agency of the British government’s Department of Commerce, shows that LSP Lisbon (Scotland) carried out a first capital increase worth 4.4 million euros on the 1st of May. The company’s capital was subsequently increased to 11.5 million euros in an operation that took place on the 23rd of May.

Contacted by ECO, LSP declined to provide information on these operations, namely on the investors who participated in these capital increases and whether the money injected into the company will be used to increase its stake in Benfica’s SAD.

Last August, Bloomberg reported that the US group was trying to raise around 50 million euros from investors to buy a stake of more than 16% in the Portuguese club’s SAD.

Currently, LSP already controls more than 5% of Benfica’s SAD, according to the latest public information, including the lot of shares corresponding to 3.28% of the capital that the Americans acquired from Luís Filipe Vieira, the former president of the eagles, at a price of 7.07 euros per share in the auction held on May 7th and whose transaction is being contested by the club led by Rui Costa, who claims that he was not given the opportunity to exercise his right of first refusal.

The Americans are already the third largest shareholder in the Reds’ SAD, only behind the club (63.66%) and businessman José António dos Santos (16.38%), with the rest of the capital dispersed on the market.

After announcing its entry into the eagles’ shareholder structure, the American group only said that it wanted to be a “productive partner” of the Portuguese club and assured that it would not interfere in sports management. But it will remain silent until the end of the sporting season.

Stocks at all-time highs

It’s in the context of the new American investor joining the SAD that Benfica’s shares have risen significantly in recent sessions and are now at all-time highs. On Wednesday at 13h00 the shares rose 2.94% to 6.134 euros, having earlier reached 6.46 euros, an all-time high.

In May alone, Benfica’s SAD has risen 60,51% on the stock exchange, giving it a market capitalisation of around 140 million euros  — well above the market value of FC Porto’s rivals’ SAD and that of companies such as construction company Teixeira Duarte.

What could be behind this enthusiasm for the eagles’ shares? The presence of an investor who has agreed to pay 7.07 euros per share and wants to strengthen his position? Or is it because LSP is acquiring securities on the stock exchange? ECO asked LSP if it was buying shares on the stock exchange, but the company didn’t reply.

On the pitch, the results aren’t so interesting. Benfica just lost the league (and direct access to the Champions League) and the Portuguese Cup to Sporting. The season isn’t over yet for the Reds, as in a few weeks they’ll be taking part in the FIFA Club World Cup, and then they’ll go on holiday.