Investindustrial confirms Aston Martin stake
Italian PE group to buy 37.5% of luxury sportscar maker
By CFOWorld.co.uk staff | CFO UK | Published 12:22, 07 December 12
Italian private equity group Investindustrial has inked a deal to buy 37.5 percent of Aston Martin from its Kuwaiti holding company Investment Dar.
Ending days of speculation, Investindustrial announced on Friday that it would be investing £150 million in Aston Martin in the form of a capital injection.
Aston Martin said the deal would enable it to invest “more than half a billion pounds” in new products and a technology programme spread over the next five years.
Investindustrial’s stake values Aston Martin at £780 million. The stake carries proportional voting rights. The move is pending regulatory approval which is expected during the first quarter of 2013.
Recent media speculation had suggested that Investindustrial was in a tussle with Indian automotive company Mahindra and Mahindra. Indian media even cited an agreement between the latter and Investment Dar as a done deal.
Amidst market speculation, ratings agency Moody's placed the B3 corporate family rating (CFR) and the B3 probability of default rating (PDR) of Aston Martin as well as the B3 rating of the senior secured notes issued by Aston Martin Capital Limited, Jersey, under review for downgrade.
Investindustrial does have pedigree in buying motoring assets. In 2006, it bought motorcycles maker Ducati and sold it to Volkswagen's Audi division five years later. Investment Dar bought Aston Martin in 2007 from Ford for £479 million with another Kuwaiti fund Adeem Investment Co.
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