Chinese group signs preliminary agreement to buy AC Milan

A Chinese consortium, represented by businessman Li Han, signed a preliminary contract with Fininvest, the parent company of AC Milan, headed by former Prime Minister Silvio Berlusconi, taking a stake of 99.93 percent of the club, according to Fininvest.

The agreement, after weeks of negotiation, values AC Milan at 740 million euros, including an estimated debt of approximately 220 million euros.

The investors operate through the management company Sino-Europe Sports Investment Management Changxing Co. Ltd, chaired by Li Yonghong, who is the main sponsor of the investor group.

The consortium also includes Haixia Capital, the State Development & Investment Corporation, and other state-controlled entities, which are active in the financial industry and other industrial sectors.

The agreement requires the Chinese investors to undertake significant capital increases and liquidity injections, aimed at strengthening AC Milan's financial structure, for a total amount of 350 million euros over a three-year period, with 100 million euros to be paid the closing of the final deal.

It also requires the acquirers to make a deposit of 100 million euros, confirming the commitments assumed, of which 15 million euros is payable upon signing and 85 million euros within 35 days of signing.

The binding final contract between the parties will be completed by the end of 2016, subject to the obtaining of applicable authorizations from the Italian and Chinese authorities.

Fininvest said in a statement: "During the entire negotiation process, Fininvest has always had the objective to provide AC Milan, through an appropriate ownership structure, with greater financial resources to compete with the top football clubs of the world."

To contact the reporter: wangmingjie@mail.chinadailyuk.com