(Yicai Global) March 29 -- US hedge fund firm Elliott Management Corp. will help a Chinese consortium to buy legendary Italian football club AC Milan, lawyers representing Elliott said.
The lawyers said in a statement that Elliott will provide EUR180 million (USD195 million) to help complete the acquisition and another EUR73 million to help the club repay its debts and serve as short-term financing for it, Reuters reported today.
Elliott will pump an additional EUR50 million into the club, bringing its total investment in the deal to EUR300 million (USD325 million), insiders said.
Last August, former Italian Prime Minister Silvio Berlusconi agreed to sell AC Milan to a consortium of Chinese investors led by Sino-Europe Sports Investment Management Changxing Co., giving up his 30-year ownership of the seven-time European champions.
The deal values the club at EUR740 million, including EUR220 million of debts. It was scheduled to be finalized last December, but the deadline has been postponed twice to April 14 as the Chinese investors failed to raise the money required for the deal.
Barring further financing issues, the deal is expected to close on April 14, an insider said.