Many people have asked how the consortium trying to acquire AC Milan was able to fund the initial deposit, while still waiting for the authorizations of the Chinese government to release capital for foreign acquisitions.
This on-going saga took an interesting turn today as Calcio & Finanza obtained a copy of a loan agreement which revealed the funding of the initial deposit was from funds outside of China.
Here is a translation of the main points of the article published in Calcio & Finanza.
On December 7th 2016, the Chinese consortium postponed the closing of the sale to March. Fininvest and Sino-Europe Sport (SES) ratified the extension of the agreement by requiring a second deposit of €100 million to be paid to Berlusconi’s holding company. The second down-payment, as confirmed by both parties, was paid on December 13th 2016. However the initial question about the source of the Chinese money remains unanswered.
Furthermore, the fact the consortium led by Yonghong Li was able to pay the additional €100 million deposit without any Chinese government authorization, raised additional questions. Where is the €200 million deposit coming from?
Hello British Virgin Islands!
Calcio & Finanza obtained a copy of a loan agreement between Willy Shine International Holdings (from British Virgin Islands) and Rossoneri Sport Investment Co. (from Hong Kong) that confirmed the funds used to pay the second deposit are from an offshore tax haven in the amount of €102 million and thus do not require any government authorization as the funds are outside of China.
Calcio & Finanza delves further and questioned who Willy Shine International Holdings Limited is and who paid the deposit. This information is currently not available as there is no requirement to divulge the list of directors and shareholders in the British Virgin Islands.
What the loan agreement has revealed thus far: Rossoneri Sport was represented by Chen Huashan (a collaborator of Li Yonghong) and that the China Huarong Asset Management Co., the largest financial asset management company in China in terms of total assets, is involved.
According to sources close to the negotiations contacted by Calcio & Finanza, the funds used for the deposit belong to Sino-Europe Sports.