AC Milan is finally being sold. I’m not the club’s biggest fan, but it would be nice if they improved at least a little bit under a new owner. It would be good for Serie A as a whole.
[quote]AC Milan: Fininvest has signed the preliminary contract with Chinese investors
Mr. Silvio Berlusconi, Chairman of AC Milan, has approved the preliminary contract signed by Mr. Danilo Pellegrino, C.E.O. of Fininvest, and Mr. Han Li, representative of a group of Chinese investors, concerning the purchase of the entire stake owned by Fininvest in AC Milan equal to 99.93%.
The investors operate through the management company Sino-Europe Sports Investment Management Changxing Co. Ltd. It consists, among others of, Haixia Capital, the State Development & Investment Corporation (“SDIC”), and Yonghong Li, Chairman of the management company and main sponsor of the investor group and with whom Fininvest has been negotiating for some time until today’s signing (“signing”). Alongside Haixia Capital and Yonghong Li, other investors will acquire shares of AC Milan, some of which are State-controlled entities. Among those investors are companies active in the financial industry and others in industrial sectors. The binding contract between the parties will be completed by the end of 2016 (“closing”), subject to the obtaining of applicable authorizations from the Italian and Chinese authorities.
The agreement values AC Milan at €740 million with an estimated indebtedness of approx. €220 million. The agreement requires the acquirers to undertake significant capital increases and liquidity injections aimed at strengthening AC Milan’s financial structure, for a total amount of €350 million over a three-year period (€100 million is to be paid-in at the “closing”) The agreement also requires the acquirers to make a €100 million deposit, confirming the commitments assumed, of which €15 million is payable upon signing and €85 million within 35 days of signing.
During the entire negotiation process, the signature of the contract and the undertakings assumed thereby, Fininvest has always had as a priority the objective which was clearly stated by Mr. Berlusconi: to provide AC Milan, through an appropriate ownership structure, with greater financial resources now more essential for competing with the top football clubs of the world. In connection with the transaction, the Chinese investors have been assisted by Rothschild & Co. as financial advisor and Gianni, Origoni, Grippo, Cappelli & Partners as legal advisor, whereas Fininvest has been assisted by Lazard and BNP Paribas as financial advisor and Chiomenti as legal advisor.