All about Silvio Berlusconi’s assets and how they will be divided
What will become of Silvio Berlusconi's companies and assets (including real estate)? Here are numbers, insights and hypotheses on the succession between children
With the death of Silvio Berlusconi, we immediately began to think about what will become of his family's companies and assets .
Il Sole 24 Ore , for example, wondered whether the succession to the Knight will be of an industrial or financial nature: whether his five children, that is – Marina and Pier Silvio, children of Carla Elvira Lucia Dall'Oglio; and Barbara, Eleonora and Luigi, children of Veronica Lario -, "the companies or the assets will be divided".
THE COMPANIES OF THE BERLUSCONI FAMILY
According to Forbes , in 2022 Silvio Berlusconi's assets were around 6.4 billion euros.
Fininvest – the holding company that owns the equity department of the Berlusconi family and redistributes the profits of the operating companies, founded by Silvio and chaired by Marina – reported in 2021 a turnover of almost 4 billion euros and profits of 360 million. The company owns 50 percent of MFE (the Mediaset group), 53.3 percent of Mondadori, 30 percent of Banca Mediolanum, the entirety of the Teatro Manzoni in Milan and the Associazione Calcio Monza (the Milan was divested in 2017).
The real estate assets of the Berlusconi family, on the other hand, fall for the most part in the Dolcedrago company, exclusively owned by Silvio Berlusconi and valued at around 500 million.
THE FININVEST DIVISION
For many years, the sole owner of Fininvest was its founder Silvio Berlusconi, in 1975. Subsequently, the shareholding was organized into twenty-two holdings – each called Holding Italiana, followed by a Roman numeral -, later reduced to seven.
Silvio Berlusconi owns approximately 61 percent of Fininvest through the Italian Holdings I, II, III and VIII. Marina and Pier Silvio both have 7.65 percent with, respectively, Holding Italiana IV and Holding Italiana V. Lastly, Barbaba, Eleonora and Luigi together control 21.4 percent through Holding Italiana XIV.
The division is roughly equal, even if the children of the first marriage jointly hold 15.3 percent of Fininvest, while those of the second marriage 21.4 percent. A difference that – writes Il Sole 24 Ore – “in perspective could be decisive and weigh on important strategic choices. Unless the holding structure is reviewed on the basis of succession”.
As Corriere della Sera points out, inside Fininvest “ex wives and companions have never entered so far. Only Silvio and his children. Once, many years ago, also his brother Paolo, who later left".
BERLUSCONI'S HERITAGE AND SUCCESSION
In theory, the 61 percent stake in Fininvest held by Silvio Berlusconi should be redistributed for 40.3 percent – the so-called legitimate share, equal to two thirds – among his heirs, in equal parts. Each child, therefore, would reach 15 percent of Fininvest.
It is not clear what will become of the remaining part, about 20.4 percent, which can be freely disposed of. Whoever of the children will receive this share will in fact have control of Silvio Berlusconi's companies.
Fininvest declared that, in the absence of the founder, its activities "will continue in a line of absolute continuity in every respect". It is therefore probable that that 20.4 percent will be divided between Marina and Pier Silvio, who together would come to hold 51.8 percent of the holding. The two already hold important positions: Marina is president of Fininvest and Mondadori; Pier Silvio is CEO of MFE. Luigi and Barbara are only directors of Fininvest; Elonora, on the other hand, has no position.
THE VIVENDI DEAL, ACCORDING TO IL SOLE 24 ORE
“The most delicate point will be to understand how the heirs of the Knight will decide to move. Without forgetting that there are some very delicate open issues, the outcome of which will certainly be marked by the disappearance of the former prime minister. First of all Mediaset, now become Mfe, and two years ago the subject of the great agreement with Vivendi still not finalized. A peace that interrupted five years of clashes with the 'promise', as soon as market conditions allowed, of Vivendi's exit from the group's capital.
Today Fininvest can count on 50% of Mfe, while Vivendi has a direct 4.5% and 19.19% transferred in 2018 to Simon Fiduciaria, the trust of the Ersel group, which according to the agreement will be progressively sold over 5 years. in tranches of about 4% each year.
But so far, two years after that armistice, Vivendi has remained steadfast in its place. No titles have been relinquished. And many read this choice with the will of the French group to stall in view of potential family rearrangements, now inevitable.
Will Cavaliere's departure from the scene perhaps pave the way for a downsizing of Fininvest in the capital of Mfe in favor of the transalpine group? It's hard to say."
HOW MUCH ARE BERLUSCONI'S PROPERTIES WORTH?
Berlusconi's private residences, such as Arcore, could be worth around 100-150 million, wrote il Corriere . The villas dedicated to holidays, such as Villa Certosa in Porto Rotondo, are worth around 500 million and are managed by Dolcedrago. Berlusconi owns two real estate properties in Antigua, in the Caribbean.
In total, Dolcedrago would have assets of over half a billion euros in its hands.
THE STORY OF VILLA CERTOSA TOLD BY THE COURIER
“Illustrious guests have passed through here, from the Russian Vladimir Putin to George W. Bush. A technical appraisal dated January 2021 indicated a value of 259,373,950 euros. An absolutely reliable document because it is signed by Francesco Magnano, the knight's trusted surveyor. Villa Certosa will hardly be divided among all the children even if there is plenty of space: 68 rooms, 181 square meters of garage alone and another 174 of parking spaces. Even if the market price could be higher than that of the appraisal, the palace of Porto Rotondo already ranks among the most expensive villas ever.
In 2009 there was talk of an offer from the United Arab Emirates for 450 million dollars for Villa Certosa, the following year according to the Spanish press it was almost done with an Iberian entrepreneur for 400 million euros, and then in 2015 it would have been Cavaliere himself to show the beauties of the residence to the son of the king of Arabia: the request seems to have been 500 million. Never anything in writing, never any confirmation.
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EXTRACT FROM AN ARTICLE FROM THE SOLE 24 ORE
With almost 4 billion in turnover recorded in 2021 and profits of 360 million which guaranteed a "family" dividend of 150 million, Fininvest represents one of the most important entrepreneurial realities in Italy. The holding has control of Mfe (formerly Mediaset) with 50%, is present in publishing with 53.3% of Mondadori, has a 30% stake in Mediolanum, owns 100% of the Teatro Manzoni and, following the sale of AC Milan , owns Monza football. Outside Fininvest, but still part of the empire built by the Arcore dynasty, there is then the real estate assets, a large part of which is kept in the Dolcedrago company, owned exclusively by the Knight and which according to some estimates is worth more than half a billion. Overall, Silvio Berlusconi's assets, according to Forbes, amounted to 6.4 billion at the end of 2022.
The law provides that in the absence of a spouse and in the presence of several children, a share equal to one third of the assets can be freely disposed of. The remaining two-thirds fall into the so-called "legitimate" quota and must be assigned to the heirs in equal parts. Assuming that the principle is applied only to Fininvest, the 61% package so far in the hands of the Knight will have to be redistributed for 40.3% in equal parts among the heirs. So about 8% to each. Each of them, therefore, would reach 15% of Fininvest. Everything will therefore be played on that 20.4%, free from legitimacy, on which there is full freedom. It is a package that will guarantee control of the empire to whoever receives it. Fininvest assured that the activities "will continue in a line of absolute continuity in every respect". Therefore, if Berlusconi had chosen the path of continuity, reconfirming his trust in Marina and Pier Silvio, already central figures in the empire, the shares of the eldest children would reach around 25.9% each, enough to have control of the holding with 51.8%. Today, in fact, at an operational level, only the two eldest children Marina and Pier Silvio have top positions. Marina is chairman of Fininvest and Mondadori, while Pier Silvio is managing director of Mfe. The younger children, Luigi and Barbara, appear together with the older brothers only on the board of Fininvest as advisers, while Eleonora does not occupy any box in the empire.
The holding company system has always ensured rich profits for the Berlusconi family. But the practice, at least in recent years, has always been to "accumulate" most of the profits in reserves. The last financial year, which ended in September of last year, was no exception. The financial statements as at 30 September 2022 all closed with a profit thanks mainly to the dividend of around 150 million detached in the summer from Fininvest. The four Segrate-based companies owned by the Cavaliere totaled around 98 million in profits. Most of these profits were placed in an extraordinary reserve while Holding Italiana Seconda decided to distribute the entire profit and 500,000 euros of reserves for a total of 24.2 million. Similar script for Marina Berlusconi's Fourth, Pier Silvio's Fifth and Barbara, Eleonora and Luigi's Fourteenth. During the year, however, Silvio Berlusconi chose to withdraw approximately 90 million in the form of dividends from the coffers of personal companies, while his two first children Marina and Pier Silvio respectively 29 and 51 million.
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EXTRACT FROM AN ARTICLE IN THE CORRIERE DELLA SERA ON BERLUSCONI'S ASSETS
If we broaden the horizon we can divide the empire into three great branches. The first, the very private residence houses (Arcore, Macherio, etc.), attributable to Silvio Berlusconi himself, could have an indicative value of 100-150 million. The second, that of holiday villas (Porto Rotondo, Cannes, etc.) has an estimated value of 500 million and has been managed for decades by four absolutely trusted professionals through companies headed by the Dolcedrago real estate holding. We are at 650 million. And so far the 5 children have not touched the ball or almost.
The third branch, the only one that doesn't burn cash but produces it in large quantities, is precisely Fininvest. Here the share of assets attributable to the founder, who owns 61.2% of the capital, is almost 3 billion out of a total of 4.9. Therefore, also considering liquidity, works of art and other unknown investments, we arrive at a minimum of 4 billion indicated
Among the most representative assets of Berlusconi's epic, very difficult to divide into equal parts, the large villas stand out. In the direct name of the former prime minister, Villa San Martino in Arcore stands out, his residence for almost 50 years: 3,500 square meters, purchased in the 1970s. 6 km away is Villa Belvedere (Macherio), bought at auction in 1988 by the Province of Milan. One of Berlusconi's favorite retreats outside Brianza is Villa Campari on Lake Maggiore. «I went on the Internet and bought a house in Cala Francese, it's called Due Palme. I too will become a Lampedusano». In March 2011, having landed in Lampedusa besieged by landings, the then prime minister announced his new real estate deal among various promises (an "indispensable" golf course and casino on the island). In Antigua, in the Caribbean, Berlusconi has two other real estate properties.
It can be estimated that more than half a billion in assets are managed under the umbrella of Dolcedrago, a holding company of investments in almost exclusively real estate companies. Overseeing this precious and confidential "territory" is what we could call the "confidential operations" team. That is, the trusted professionals based in Segrate who take care of the personal affairs of the Knight: Giuseppe Spinelli (81 years old), Salvatore Sciascia (80), Giuseppino Scabini (75) and the «boy» Marco Sirtori (57).
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/economia/silvio-berlusconi-eredita-fininvest-successione/ on Tue, 13 Jun 2023 08:08:25 +0000.