Fininvest agreed to sell Milan

Fininvest agreed to sell Milan - A preliminary agreement sales Milan to a group of investors from China was approved by the Italian company which is controlled by the Berlusconi family.

Chinese consortium eventually bought the rights of ownership Milan. Silvio Berlusconi to allow the shares ownership Milan almost 100 percent, or more precisely 99.93 percent, to investors from China.

Fininvest, the Italian company that is controlled by the Berlusconi family, announced a preliminary agreement on the sale of shares ownership of the club.


"President Silvio Berlusconi approved the preliminary agreement signed by the managing director of Fininvest, Danilo Pellegrino, and Han Li, a representative of a group of Chinese investors on the purchase and sale of the entire stake owned Finivest AC Milan," said the statement.

In a statement, the contract will be finalized by the end of 2016 and according to the statement, the total sales value of shares reached 740 million euros and take over the debt situation of around 220 million euros.

In the agreement also included the commitment on the buyer, to make an important recapitalization and balance also the financial strengthening of Milan, with a total value of 350 million euros in three years, with 100 million euros of which is paid when the moment 'closure'.

From ACMilan.com :

FININVEST: PRESS RELEASE
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.

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