Sale of Milan to Investcorp: the billion is ready

The fund’s aim is to get the club back to winning the Champions League: they now have two more weeks of exclusive negotiations with Elliott

Entry or exit in a few weeks. April could be the turning point for the Rossoneri: it could mark the start of a new era. If Investcorp becomes the new owner of AC Milan, we will know very soon: the due diligence, the analysis of the accounts, will be concluded quickly. Exclusive trading between the Bahrain-based fund and Elliott will last a maximum of another fortnight. The money is ready. The sports season that began with Singer in charge could end with a new owner.

why ac milan?

Investcorp strongly wants Milan. She chose it and intends to include it in her heritage. In the galaxy owned by the fund are iconic brands relaunched around the world. In Italy, a similar operation had been carried out in fashion, with the Gucci brand: history, tradition, worldwide recognition, market value. AC Milan meets the same requirements in terms of sport: this is why Investcorp considers the club perfectly functional to its development project. Here it is: after acknowledging Elliott’s merits in rebuilding and reviving the company domestically and beyond, Arab ownership intends to bring Milan back to compete for the loftiest goals. No longer participating in the Champions League, but playing to win it. Mubadala, the Abu Dhabi sovereign wealth fund which owns 20% of the Bahraini financial company and whose CEO is Khaldun al-Mubarak, president of the City, is also participating in the acquisition of Milan with Investcorp.

from bahrain to the world

Based in Manama, Bahrain, Investcorp has taken on a global dimension over the years: it has offices and agencies scattered all over the world. Today, he wishes to reconnect with Italy, after having been among the first investment funds to invest in our country. Since 2015, Omani Mohammed Bin Mahfoodh Alardhi has been its executive chairman: under his leadership, he achieved the stated objective of doubling assets under management. He personally follows the agreement with Elliott for Milan: the exclusive negotiation dates back to the beginning of the month and now includes another two weeks of negotiations between the parties. Yesterday, Alardhi introduced himself in a tweet in English to Rossoneri fans (who responded with hundreds of enthusiastic comments): “Congratulations to Milan for being back at the top of the Italian league. Happy Easter to the club, to its fans and to all who celebrate on this occasion”. It’s still too early to say if Alardhi can also have an operational role at the club.

the stages of the transaction

Certainly with Investcorp he is ready to invest a billion euros. Due diligence is ongoing and will take a little longer. The balance sheet is in order and transparent: with Elliott, liabilities have fallen from -195 million in June 2020 to -96 million in summer 21, with a forecast of a new red halving in June this year. When the parties, once the championship was closed, would have announced the possible closure of the negotiation: the news came out ahead of the forecasts. The timing of the new stadium project is also to be considered: the sports equipment still to be built would also be included in the bill of more than one billion euros. Investcorp is looking into the practice: it might want to rethink the current design in favor of a more massive stadium. Elliott does not deny the sale hypothesis. On the contrary, it underlines that the search for potential buyers did not start in New York. And we remember the work of rebuilding Milan: from the foundations to the top of the championship, to the reconquest of the Champions League. A combination of high-level sporting and financial performance that claims the uniqueness of the club: a reason that has made it attractive again, arousing the interest of major international investors. Investcorp has moved more decisively than the others. And April may already be the pivotal month.


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