Fininvest loses 120mln euros in 2016 partially due to failed Vivendi deal

BY  | FROM  | 2017-06-30 14:47

Fininvest S.p.A. holding company posted losses of over 120 million euros (about 137 million dollars) in 2016, according to a company statement Thursday.

The statement ascribed the losses in part to "extremely serious damages" caused by French media company Vivendi's "failure to respect its binding agreements with Mediaset".

Mediaset media conglomerate is majority owned by Fininvest, the family holding company of former Italian prime minister and ex-AC Milan owner Silvio Berlusconi.

Fininvest and Vivendi have been tussling since a deal between the two went sour in late July last year, when the French company backed out of an agreement to purchase Mediaset's pay TV subsidiary, Mediaset Premium.

"Considering the impact of non-recurring items and charges of 95 million euros due to (AC) Milan's entire financial year ... the Group's net result shows losses of 120.2 million euros (against a substantially flat result in 2015)," said the statement.

The sale of AC Milan, to be finalized this year, will increase capital at the consolidated level by about 600 million euros, the company said.

Rossoneri Sport Investment Lux, formerly known as Sino-Europe Sports and led by Chinese businessman Li Yonghong, completed the purchase of Fininvest's 99.93 percent stake in AC Milan in April this year.

The deal, which valued the club at 740 million euros, was reached between Sino-Europe Sports and Fininvest last August.

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