Chinese group said seeking to seal AC Milan takeover by June

AC Milan’s Alex (1st right) celebrates for goal during a Serie A football match against Juventus, April 9

The Chinese investor group pursuing a takeover of the AC Milan football club, which is controlled by former Italian Prime Minister Silvio Berlusconi, is targeting a deal by June, people with knowledge of the matter said.
The consortium, whose investors have a background in renewable energy and media, has agreed on most key terms and is seeking a deal in time for the summer transfer season, the people said, asking not to be identified because the talks are confidential. Berlusconi’s  Fininvest SpA and the Chinese group have already discussed plans to strengthen the squad, and the initial investment would be used to make the team more competitive rather than pay down debt, one of the people said.
Berlusconi, who has owned Milan for 30 years, is seeking a buyer at a low point in the club’s history. Once considered football royalty, the team is languishing in sixth place in the Italian league and fired its manager last week. A deal would also mark the second major Chinese investment in a European football club in less than six months, after a group led by China Media Capital Holdings bought a USD400 million stake in Manchester City Football Club’s owner.
The Chinese consortium is targeting at least a 50 percent stake, which could rise to about 70 percent, one of the people said. The investors are now conducting due diligence on AC Milan’s debt as well as player contracts, another person said.
Berlusconi serves as honorary club president, and his daughter, Barbara, joined the board in 2011. The billionaire three-time premier has been in separate talks with Thai investor Bee Taechaubol since at least last year. Bee has been forced to look at new ways of raising financing after an arm of Chinese conglomerate Citic Group Corp. pulled the funding it was going to provide for Bee’s bid, according to two people familiar with the matter.
Bee, who is chairman of Bangkok-listed Electronics Industry Pcl, remains interested in buying into the club, though he’s unlikely to invest as much as he had previously expected, according to one of the people. The Chinese group had discussions with Fininvest about acquiring a stake before negotiations started with Bee, another person said.
Italy’s La Gazzetta dello Sport reported in January that Bee was offering 480 million euros ($540 million) for a 48 percent stake. Milan is worth $775 million, according to Forbes.
Under the plan being discussed, Berlusconi would retain a senior title at the seven-time European champion, according to the people.
President Xi Jinping is pushing to turn China into a soccer force and last year published a national plan to grow the sport. Chinese teams have been the biggest spenders on talent in 2016, and some of the nation’s richest businessmen have invested in clubs and training programs at home and overseas. Jonathan Browning and Tariq Panja, Bloomberg