Sale of Milan to Investcorp: one billion is ready

In or out in a couple of weeks. April could be the month of the Rossoneri turning point: it could mark the beginning of a new era. If Investcorp becomes the new owner of AC Milan we will know very soon: the due diligence, analysis of the accounts, will be concluded quickly. The exclusive negotiation between the Bahrain-based fund and Elliott will last for another fifteen days at the most. The money is ready. The sporting season that began with Singer in command could end with a new owner.

why ac milan?

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Investcorp strongly wants Milan. It has chosen it and intends to include it in its assets. In the galaxy owned by the fund are iconic brands relaunched worldwide. In Italy a similar operation had been carried out in fashion, with the Gucci brand: history, tradition, global recognition, commercial value. AC Milan meets the same requirements in sport: which is why Investcorp considers the club perfectly functional to its development project. This is what it is: having recognized Elliott’s merits in the reconstruction and relaunch of the company at a national level and beyond, the Arab ownership intends to bring Milan back to compete for the noblest objectives. No longer participating in the Champions League, but playing to win it. Mubadala, the Abu Dhabi sovereign fund which holds 20% of the Bahrain financial company and whose CEO is Khaldun al-Mubarak, president of the City, also participates in the acquisition of Milan with Investcorp.

from bahrain to the world

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Headquartered in Manama, Bahrain, Investcorp has taken on a planetary dimension over the years: it has offices and agencies scattered all over the world. Now he wants to renew his link with Italy, after being among the first private equity firms to invest in our country. Since 2015, Omani Mohammed Bin Mahfoodh Alardhi has been its executive president: under his management he achieved the declared goal of doubling the assets under management. He is personally following the deal with Elliott for Milan: the exclusive negotiation dates back to the beginning of the month and now provides for another two weeks of negotiations between the parties. Yesterday Alardhi introduced himself in a tweet in English to the Rossoneri fans (who replied with hundreds of enthusiastic comments): “Congratulations to Milan for being back at the top of the Italian championship. Happy Easter to the club, its fans and all those who celebrate on this occasion “. Whether Alardhi can also have an operational role in the club is still too early to say.

the stages of the deal

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Certainly with Investcorp he is ready to invest a billion euros. Due diligence is ongoing and will take little more time to complete. The balance sheet is in order and transparent: with Elliott the liabilities fell from -195 million in June 2020 to -96 million in summer ’21, with a forecast of a further halved red in June of this year. When the parties, once the championship was closed, would have announced the possible closure of the negotiation: the news came out in advance of forecasts. The timing of the project for the new stadium should also be considered: the sports facility still to be built would also be included in the bill of over one thousand million euros. Investcorp is looking into the practice: it may want to rethink the current design in favor of a more massive stadium. Elliott does not deny the hypothesis of the sale. If anything, he underlines that the search for potential buyers did not start from New York. And Milan’s reconstruction work is remembered: from the foundations to the top of the league, to the reconquest of the Champions League. A combination of top-level sports and financial performance that claims the club’s uniqueness: a reason that made it attractive again, moving the interest of large international investors. Investcorp has moved more decisively than the others. And April may already be the turning point month.