The AC Milan takeover by Bahrain-based asset manager Investcorp may be agreed upon this week, according to Reuters. The talks between Investcorp and current Milan ownership, United States-based hedge fund Elliott, are progressing quickly.
AC Milan Takeover May Happen as Early as This Week
The Numbers
The current valuation for the Italian giants is set at €1.18 billion. This is the number being discussed between Investcorp and Elliott. The number also includes Milan’s debt, which has been lowered significantly since Elliott took over the club from Chinese businessman Li Yonghong.
Should the deal go through, it will be the first takeover of an Italian side by Middle Eastern investors. Italian clubs, however, are attracting plenty of foreign interest, as the valuation of clubs is typically lower than clubs based out of England and Spain. For example, Milan’s main rivals in Inter Milan is in the hands of China’s Suning Group.
Investcorp holds a strong history of increasing the value of major brands. Some of these brands include Gucci, Tiffany and Co. and Dainese. Investcorp, in fact, seems to have plenty of interest in Italian brands with the aforementioned deals for Gucci and Dainese, and now Milan.
Spokespersons from both Investcorp and Elliott are declining to comment at the moment. On the surface level, this seems to be a sign that negotiations are truly heating up.
The Future
Elliott is building a very solid base at Milan. In fact, Milan are playing their best football in years. With this being said, one would imagine that Investcorp will follow in the same footsteps.
For starters, Milan prioritises youth. These young players continue to improve, with examples being Sandro Tonali, Rafael Leao, Fikayo Tomori, and others.
Additionally, Milan are rising back to the top of Italy. In fact, the club is currently in first place in Serie A. Moreover, they also returned to the Champions League this season. With their most recent victory over Lazio, Milan will once again be back in the Champions League next season.
It would come as no surprise to see Investcorp move quickly in the transfer market. Milan are showing heavy interest in many players from defence to the midfield and the front line. In addition, Investcorp is going to have veteran decisions to make as well. This includes the futures of players like Zlatan Ibrahimovic and Alessandro Florenzi.
Times are certainly looking up in Milan, however. The club is moving in an upwards trend with strong performances. The foundation of youth continues to grow. Stability at the manager position looks its best in nearly a decade. An influx of money in a Milan takeover is perhaps what the club needs to finally ascend back to elite status.
Main Photo
