Tech Mahindra, the software services arm of conglomerate Mahindra
& Mahindra, has entered into an agreement with Pincar SrL to acquire
a controlling stake in iconic Italian automotive design firm
Pininfarina, which has designed cars for Ferrari, Maserati, Rolls-Royce
and Cadillac.
As a part of the deal, Tech Mahindra and parent Mahindra & Mahindra will purchase 76.06% shares of Pininfarina from the current controlling shareholder Pincar for €1.1 (Rs 81.4) per share or about €25 million (Rs 184 crore).
This investment will done via a joint venture company, which will be 60% owned by Tech Mahindra and 40% by M&M, Tech Mahindra said in a statement on Monday Dec 14,2015
This will be followed by an open offer for all the remaining ordinary shares of Pininfarina at the same price (€1.1/share).
A rights issue to infuse funds into the design house will also be executed before the end of 2016, Tech Mahindra said.
Mahindra will also reportedly provide a guarantee to creditors of €114.5 million.
Pininfarina has made losses for years and has debt of around €50 million.
“Pininfarina will add enormous value to Tech Mahindra’s portfolio of engineering services. But just as important is the fact that the legendary high-end design credentials of Pininfarina will significantly enhance the design capabilities of the entire Mahindra group,” said Anand Mahindra, chairman of Mahindra Group.
Apart from cars, Milan-listed Pininfarina also designs buildings, interiors and electronics.
As a part of the deal, Tech Mahindra and parent Mahindra & Mahindra will purchase 76.06% shares of Pininfarina from the current controlling shareholder Pincar for €1.1 (Rs 81.4) per share or about €25 million (Rs 184 crore).
This investment will done via a joint venture company, which will be 60% owned by Tech Mahindra and 40% by M&M, Tech Mahindra said in a statement on Monday Dec 14,2015
This will be followed by an open offer for all the remaining ordinary shares of Pininfarina at the same price (€1.1/share).
A rights issue to infuse funds into the design house will also be executed before the end of 2016, Tech Mahindra said.
Mahindra will also reportedly provide a guarantee to creditors of €114.5 million.
Pininfarina has made losses for years and has debt of around €50 million.
“Pininfarina will add enormous value to Tech Mahindra’s portfolio of engineering services. But just as important is the fact that the legendary high-end design credentials of Pininfarina will significantly enhance the design capabilities of the entire Mahindra group,” said Anand Mahindra, chairman of Mahindra Group.
Apart from cars, Milan-listed Pininfarina also designs buildings, interiors and electronics.
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