Silvio Berlusconi Sells Milan AC to Chinese Investors

Former Italian prime minister and media tycoon Silvio Berlusconi on Friday signed a preliminary contract for the sale of a 99.93 percent stake in the Milan AC soccer team to Chinese Sino-Europe Sports Investment Management Changxing Co. Ltd. The Chinese company is backed by a group of investors, which includes China’s state investment fund Haixia.

The deal, which is expected to close by the end of the year, is valued at 740 million euros, or $818.13 million at current exchange rates. Milan AC currently has estimated debts of 220 million euros, or $243.23 million. As part of the contract, Sino-Europe Sports Investment Management Changxing will invest 350 million euros, or $385 million, over the next three years to shore up the company’s financial situation.

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Last April, market rumors claimed that Jack Ma, founder of the Chinese web giant Alibaba Group, offered Berlusconi 400 million euros, or $442.2 million, to acquire a 70 percent share of the soccer team.

Berlusconi had previously negotiated the sale of the club to Thai entrepreneur Bee Taechaubol, but the deal fell through earlier this year.

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