China’s Rastar Group said on Monday its Hong Kong unit is to take up to a 56% stake in Spanish football club Espanyol as Chinese companies continue their investment in European clubs.
Principally engaged in model car and related raw materials business, the company said it will pay €78 (£55) for each share of the La Liga club for a 45.1-56% stake in a deal valued between €14.3-17.8m (£10.1-£14m).
The company, based in China’s southern Guangdong province, said it will pay in cash for the deal.
“The company hopes that the deal will help it expand its interactive entertainment business in the sports sector,” Rastar said in a Chinese filing on the Shenzhen stock exchange.
After acquiring the stake, Rastar said it will increase its investment in Barcelona-based Espanyol, who are 10th in the La Liga standings, by up to €45m.
Last month, CEFC China Energy Company bought a majority stake in Slavia Prague, one of the Czech Republic’s oldest clubs.
The Chinese property conglomerate Dalian Wanda Group Co bought 20% of Spanish club Atlético Madrid for €45m earlier this year.