Mahindra Group acquired Italian auto design firm Pininfarina
For the acquisition of Milan-listed Pininfarina, Tech Mahindra and Mahindra and Mahindra have formed a 60:40 joint venture.
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.
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