Mahindra and Mahindra (M&M) along with Tech Mahindra have jointly bought out the famed Italian design house - Pininfarina. Both Tech Mahindra and M&M are part of the global $16.9 billion Mahindra Group. Mahindra will now have the controlling stakes in the 85 years old firm which is known for designing Ferrari, Alfa Romeo, Maserati and Peugeot among others.
Adding to the deal, Tech Mahindra along with Mahindra & Mahindra will buy 76.06 % of Pininfarina shares from the current controlling shareholder PincarS.r.l. at a price of Euro 1.1 per share. This investment by Tech Mahindra and M&M shall be done via a joint venture company ("JVCo"), and the ownership of this company will be divided among the two stake holders with 60 % of the share owned by Tech Mahindra while remaining 40 % will be with M&M. This will be followed by an open offer for all the remaining ordinary shares of Pininfarina, at the same purchase price paid for the shares held by Pincar. A rights issue to infuse funds into the design & styling major will also be executed before the end of 2016. Pininfarina will continue to remain an independent company, listed on the Milan Stock Exchange, with Mr Paolo Pininfarina continuing as the Chairman of its board.
Mr. Anand Mahindra, Chairman of the Mahindra Group, commenting on Pininfarina joining the Mahindra family, said, "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. Given the increasing design sensibilities of today’s consumers, product design will greatly influence customer choice and experience, and hence our success”.
"Our clients want more from us, consistently. Adding Pininfarina's legendary design skills to our Integrated Engineering Solutions enables a strong entry into Automotive styling, design & development and reinforces our body engineering capabilities. Further, Pininfarina's 25-year design expertise in industries beyond Automotive will give us that winning edge in areas such as Aerospace, Consumer Electronics, Architecture & Interiors and Transportation where we already have a strong footprint," according to CP Gurnani, CEO & Managing Director, Tech Mahindra.
Paolo Pininfarina, Chairman Pininfarina S.p.A. added, "In a globalized world, entrepreneurship and capital do not need a passport. We are joining hands with a $ 3.9 Billion Technology & Global partner, and part of the $ 16.9 billion global Mahindra Group, which will not only strengthen our Italian identity but will open more doors. Tech Mahindra's global presence and global delivery model will allow us to compete for a larger pie of the business."
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Source : CarDekho