Sino Europe Sports is finding ways to circumvent the Chinese government clampdown on acquisitions via offshore funds in the British Virgin Islands once again.
A new company was created, Rossoneri Advanced Company Limited to provide funding to Rossoneri Sport Investment (the other Sino Europe Sports company based in Hong Kong) in order to pay Fininvest the third deposit of €100M to keep the deal open to acquire Milan and delay the closing to April 14 (rumoured new closing date).
According to official documents received by Calcio & Finanza, Rossoneri Advanced Company Limited, provided €103M of capital to Rossoneri Sport Investment (864.5M Hong Kong dollars). This took place on Feb. 20, 2017, which was a few days before March 3 (original date for the closing). The transaction formally closed on March 9, and received regulatory approval in Hong Kong only on March 21.
This new offshore company was required to deal with the difficulties of exporting capital out of China, according to sources.
If all goes according to plan, Fininvest will receive the third deposit soon and then a new agreement will be signed to delay the closing to a future date.
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