Fininvest have released an official statement confirming that preliminary contracts regarding the sale of Milan to Chinese investors have been signed.
Among other things, it states that the Rossoneri have been valued at €740m, with perspective new owner Yonghong Li obliged to clear debts totalling €220m and invest a further €350m into the San Siro club over a three-year time frame.
“Mr Silvio Berlusconi, Chairman of AC Milan, has approved the preliminary contract signed by Mr Danillo Pellegrino, CEO 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 per cent,” the statement begins.
“The investors operate through the management company Sino-Europe Sports Investment Management Changxing Co. Ltd. It consists among others of Haixa Capital, the State Development & Investment Corporation, 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 before today’s signing.
“The binding contract between the parties will be completed by the end of 2016, subject to the attaining of applicable authorisations from the Italian and Chinese authorities.
“The agreement values Milan at €740m with an estimated indebtedness of approximately €220m.
“The agreement requires the buyers to undertake significant capital increases and liquidity injections aimed at strengthening AC Milan’s financial structure, for a total amount of €350m over a three-year period.
“The agreement also requires the buyers to make a €100m deposit, confirming the commitments assumed, of which €15m is payable on signing and €85m within 35 days of signing.”