Chinese investors in Milan deal
Print Edition
SILVIO Berlusconi has agreed to sell more than 99 percent of AC Milan to a group of Chinese investors, Fininvest, the holding company of the Berlusconi family, announced yesterday.
A preliminary agreement after months of talks sets the value of the Italian giant at 740 million euros (US$825.4 million), with a further 220 million euros debt.
Chinese and Italian authorities must now approve the deal scheduled for completion before the end of 2016.
The deal was signed by Danilo Pellegrino, the Fininvest CEO, and Li Han, a representative of the Chinese investors.
“Throughout the negotiations Fininvest has maintained its position established by Mr Berlusconi to provide AC Milan with a structure from which it can compete with the world’s top clubs,” Pellegrino said.
The group has been named Sino-Europe Sports Investment Management Changxing, and includes tycoon Li Yonghong, the Haixia Capital group and other private and public Chinese companies.
The buyers paid 15 million euros immediately and are due to pay a further 85 million euros within 35 days.
The buyers will invest 350 million euros over three seasons into the once mighty club, which finished seventh in Serie A last season, and which lifted its seventh European crown in 2007.
The deal follows hot on the heels of Milan’s city rival Inter Milan being bought out by the Chinese investment group Suning in June.
Earlier yesterday, the owner of Premier League club West Bromwich Albion agreed to sell the team to Chinese investment group Yunyi Guokai (Shanghai) Sports Development Ltd.
The team said that Yunyi Guokai, headed by entrepreneur Lai Guochuan, will complete a takeover of the club, subject to approval by the league and English financial authorities.
Lai oversaw the development of the landscaping company Palm, which started out as a plant nursery business and now develops eco-towns in China and is worth 1.8 million pounds (US$2.36 million). He has purchased an 88 percent stake in the club owned by chairman Jeremy Peace, who is stepping down.
In a statement, the 42-year-old Lai described himself as a “lifelong football fan” and said he was “excited and privileged” to become the new owner of West Brom, which has been in England’s top division since 2010.
Lai joins a growing number of Chinese tycoons and companies making splashy investments in English football.
Aston Villa, which was relegated from the Premier League last season for the first time, was taken over by Chinese businessman Xia Jiantong in June. Second-tier team Wolverhampton Wanderers was bought out by Chinese conglomerate Fosun International in July in a 100 percent takeover. And a Chinese firm bought a stake in Birmingham City, another League Championship club.
West Brom, Villa, Wolves and Birmingham are all clubs in central England.
Manchester City also said in December that China Media Capital Holdings and CITIC Capital were investing US$400 million to buy 13 percent of the Premier League club’s umbrella organization.
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