Il Sole 24 Ore via MilanNews.it are reporting that AC Milan’s purchase by Bahraini fund Investcorp from American fund Elliot Management is progressing well and should close soon. More details have emerged on the finances of the operation with should cost 1.2 billion euros.
The fund will put in about 800 million euros of their own money into the operation while the remaining 400 million euros is expected to arrive from financing which includes some amount from banks including JP Morgan and Goldman Sachs. Of the 800 million equity, about 600 million is considered to be permanent capital which constitutes funds for long term investment.
Franco Ordine for MilanNews.it is reporting that Elliot would not consider an offer financed through a bond issuance. He notes that Elliot are keen to leave the club clear of debts. He notes that the technical staff at the club including directors Paolo Maldini and Ricky Massara and chief scout Geoffrey Moncada are expected to get new contracts. Ivan Gazidis may be offered a renewal is he is open to it.
There is now a rival bid from RedBird Capital Partners in play who are offering 1 billion euros and entirely self financed which could potentially sway talks.