Tech Mahindra and Mahindra and Mahindra Ltd, part of the Mahindra Group, on 14 December 2015 acquired Italian car designer Pininfarina SpA for 165 million US dollars in an all-cash deal.
Pininfarina is well-known for designing cars for Ferrari, Maserati, Rolls-Royce and Cadillac.
Highlights of the acquisition
• For the acquisition of Milan-listed Pininfarina, Tech Mahindra and Mahindra and Mahindra have formed a 60:40 joint venture.
• The joint venture will acquire 76.06 percent in Pininfarina from its controlling shareholder Pincar Srl at a price of 25.3 million euros.
• The joint venture will buy out the remaining 23.94 percent ordinary shares of Pininfarina through an open offer.
• The JV will also infuse 20 million euros into Pininfarina by way of a rights issue, which would be executed before the end of 2016.
• Tech Mahindra and Mahindra and Mahindra have also signed definitive agreements with the lenders and creditors of Pininfarina to restructure the existing debt.
• It will also provide a corporate guarantee not exceeding 114.5 million euros to the lenders, creditors and lessors of Pininfarina.
• Pininfarina will continue to be an independent company with Paolo Pininfarina continuing as the chairman of the board.
Now get latest Current Affairs on mobile, Download # 1 Current Affairs App
Comments
All Comments (0)
Join the conversation