Bi-monthly checks on Milan?
It’s reported that Elliott Management will check up on the new Milan ownership every two months, to protect their investment.
Rossoneri Sport Investment Lux, led by Yonghong Li, finally completed their takeover of the club last week, thanks to an injection of €330m worth of capital from the US hedge fund.
This morning’s Gazzetta dello Sport is carrying a report on the deal, breaking down the details of the agreement between Elliott and Li.
Of the €330m, €180m went toward the closing, €73m is intended for the lending banks and €50m will be used for developing the club.
As might be expected, there is significant interest on the deal, with the €180m carrying a rate of 11.5 per cent, while the remaining money will have a rate of 7.7 per cent.
Elliot expects the money to be paid back in 18 months, in one single payment, in accordance with a detailed business plan presented by the new Milan owners.
That plan is based on increasing the value of the 99.93 per cent shareholding which Rossoneri Sport Investment Lux now holds in the club, meaning they can’t simply sell assets to fund the repayment.
Elliott Management will not, however, have any direct control over the board and will have no say on transfer market dealings.
Instead, the US fund will receive a written report every two months, as well as periodically holding meetings with the board to establish progress.
Should the new owners fail to pay back what they owe, their shareholding would go to Elliott and then likely be sold on the stock market.
However, Gazzetta points out that the hedge fund is likely to help find new investors to help Li and his new board, as a way of protecting their own investment.
http://www.football-italia.net/101372/bi-monthly-checks-milan
About time we get some structure.
typical fusiproe troll 1/10 always
