The operations to refinance Milan’s debt are ongoing. The president is searching for a minority partner to join the Rossoneri Sport Investment.
After having put the investment bank Merrill Lynch in charge, Yonghong Li is screening the market to find a minority partner. Meantime, as reported by Italian outlet ‘Repubblica’, the bank is in charge of refinancing Milan’s debt and of the reorganization of the holding Rossoneri Sport Investment.
According to the Italian newspaper, the main option on the table of the Milan president is to put on the market 25% of the holding. This operation, that will be completed with a capital increase and not through the transfer of shares of the Luxembourg vehicle, would provide to Rossoneri Sport Investment the necessary resources to replenish its debt with the American fund Elliott.
A secondary solution studied by Merrill Lynch doesn’t foresee the arrival of a new investor in the holding but the unpacking of the debt (about €180 million) of Rossoneri Sport in several tranches, then offered to as many investors in debt securities, which would get Milan’s shares as collateral.
However, according to ‘Repubblica’, the best solution for the Chinese president would be to find a new minority partner for the holding.
Meantime, UEFA summoned Milan’s directors in Nyon (April 16 to 20, 2018) to know further details in reference to the economic situation of the club. The Italian newspaper also reported that if a minority partner will not be found soon, Yonghong Li could take into consideration to sell the majority stake in the club keeping only 30-40% of Milan’s shares. By doing so, he could recover his economic efforts in two stages.