Chinese State Brokerage Everbright Securities Company Limited. Two former Italian owners of British sports media company MB & Silva (MPS) are being prosecuted for fraudulent misrepresentation and breach of tax obligations.
Unit of Everbright Capital Investment Co., Ltd. and Jinxin Inc. Everbright Capital’s foreign investment is seeking compensation of $661 million (4.2 billion yuan) in the High Court of London in England and Wales. Everbright is trying to recover some of these Big loss This happened because of the unfortunate acquisition of MPS in 2016.
The Italian founders of MPS are two prominent figures in sports and sports media. Ricardo Silva, 51, owns Silva International Investments and is the chairman of Miami FC, while Andrea Radrizani, 46, owns English football club Leeds United and heads television group XI Sports.
Everbright Capital was part of the consortium that bought 65% of MPS for 5.2 billion yuan. The deal comes at a time when Chinese companies were struggling to acquire foreign companies, which later failed. Everbright Capital invested 60 million yuan, while key partners including China Merchant Bank Co., Ltd. and Shanghai Huarui Bank Co., Ltd. did most of the financing.
After a series of rights payments to major sports organizations, MBS was declared bankrupt and liquidated in October 2018. Everbright Capital paid billions of yuan to two major consortium partners, according to its funding agreement. If the major partners are unable to “exit the investment,” Everbright Capital has agreed to indemnify.
As of May 2019, Everbright Capital sued From China Merchants Bank and Shanghai Huarui Bank for compensation of 3.5 billion yuan. An Everbright executive told Caixin that the rulings do not mean the company will waive related responsibilities or rights in relation to the lawsuits.
The failed investment and subsequent financial disputes led Everbright Securities to set aside 1.4 billion yuan of bad debt provisions in 2018 and 1.6 billion yuan in 2019. The deal continues to undermine the company as it alienated others. 2020 investigation into his resignations due to his role in or deals with several senior executives.
Communications Editor Bob Simpson ([email protected])
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