March 27, 2017 / 12:05 PM / 5 months ago

CORRECTED-US fund Elliott to help Chinese investors buy AC Milan with 300 mln euros

(Corrects first paragraph to clarify lawyers represent AC Milan and top Chinese investor in consortium, not Elliott)

MILAN, March 27 (Reuters) - U.S. private equity fund Elliott is helping a struggling Chinese consortium buy Italian storied soccer club AC Milan with a 253 million euro investment, lawyers representing AC Milan and the main Chinese investor in the consortium said on Monday. In a statement, the lawyers said Elliott would provide 180 million euros to complete the acquisition, and another 73 million euros to help the club face short-term payments. A source close to the matter said Elliott would provide an additional 50 million euros to be invested in the club, bringing its total exposure to the deal to around 300 million euros.

In August a group of Chinese investors signed a deal to buy the Serie A team from former Italian prime minister Silvio Berlusconi - its owner for the last three decades - in what would be the biggest Chinese investment in a European club.

The deal, which values the club at 740 million euros including 220 million in debt, was originally supposed to close in December. But that deadline has been postponed twice to April 14 as the Chinese investors - whose identity remains largely unknown - failed to gather the necessary funds for the deal.

Reporting by Giulia Segreti, Elvira Pollina, Maria Pia Quaglia

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