Former Italian prime minister Silvio Berlusconi agreed yesterday to sell AC Milan to a consortium of Chinese investors, ending his three decades of ownership of the seven-times European champions.
Berlusconi’s Fininvest family holding said it had signed a preliminary agreement valuing the club at €740 million including €220 million of debt.
The Chinese investors, whose identity had not been disclosed during three months of negotiations, included development and investment fund Haixa Capital and Yonghong Li, chairman of management company Sino-Europe Sports Investment Management Changxing, the statement said.
It added that there were other companies involved in the deal, some of which are controlled by the Chinese state, but gave no further details on their exact identity.
Last month, a source said that private investment firm GSR Capital, with its co-founder and Chinese dealmaker Sonny Wu, were among investors but the Fininvest statement did not mention either.
Chinese investors with cash to spend have been pouring money into soccer, as President Xi Jinping, a soccer fan himself, looks to make the country a global force in the sport.
Yesterday, China’s food and beverage packaging products company ORG Packaging Co Ltd also said it planned to acquire a 60 per cent stake in French second division club AJ Auxerre for €7m.
Once the AC Milan deal goes through, it will mean both of the city’s soccer clubs are controlled by Chinese investors.
In June electronics retailer Suning Commerce Group Co Ltd agreed to buy nearly 70 per cent of city rivals Inter for €270 million in what was the highest profile takeover of a European team by a Chinese firm.
The sale of AC Milan, one of Berlusconi’s most cherished assets, is part of a wider effort by the 79-year-old former prime minister to reshape his business empire to prepare for his own succession, disposing of the most indebted businesses.
The deal is due to be closed by the end of the year.
Fininvest said the buyers had committed to investing €350 million over the next three years into the club, which has failed to win a major trophy since 2011.
AC Milan reported a loss of €93.5 million last year. They need cash to put the club on a par with the top European clubs, many now bankrolled by Gulf and Asian owners.
This is not the first time that Berlusconi has tried to sell AC Milan.
Last year, talks with Thai businessman Bee Taechaubol to sell a majority stake foundered when Berlusconi changed his mind at the last minute.