Wang Jianlin, a real estate tycoon, closed the deal with Atletico chairman Enrique Cerezo in Beijing, Wanda Group announced today.
According to the contract, Wang will pay USD 52 million for the stake, which is set to ease the Spanish club's debt burdens.
The deal involved opening three Atletico Madrid football schools in China, sponsorship deals and a possible tour by the club to China later this year.
Wanda Group is also funding a youth training project which already brought 90 young Chinese players to Spain and the number is expected to reach 180 in 2017.
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Wang, ranked 42nd in Forbes' richest persons list with his fortune estimated at around USD 18 billion, said his cooperation with Atletico is based on friendship with the club's chiefs and his own dream to raise the game of young Chinese players.
"What we are doing is to raise the level of Chinese game," said Wang.
Wang was once owner of the Dalian Wanda football team in then Chinese first division league, the predecessor of the current Chinese Super League, but sold the club in 2000 over disillusionment with a league rife with corruption and scandals.
In 2011, Wang returned to Chinese soccer as a sponsor of the Super League and he started investing widely in major European cities.
Wang raised USD 3.7 billion last month by floating a chunk of his Wanda stock on the Hong Kong stock market.