Aston Martin scores bids from Mahindra and UK equity house
11-25-12, 12:26 AM
#1
Aston Martin scores bids from Mahindra and UK equity house
Aston Martin scores bids from Mahindra and UK equity house
Three weeks, ago Businessweek reported that Investment Dar, Inc. was looking to shed its majority stake in Aston Martin. The Kuwait-based financial firm is apparently seeking to restructure its debt load and has sought $800 million for its 64-percent share in the English automaker. That amount compares to the $925 million that it took for a consortium, Investment Dar among them, to purchase 100-percent of Aston Martin from Ford in 2007.
According to reports, bidding for the 64 percent hasn't gone anywhere near that price, however. Bloomberg (parent company of Businessweek) reports that London-based private equity house Investindustrial has made a bid of nearly 250 million pounds ($401 million U.S.), with their overture trumped shortly thereafter by Indian automaking conglomerate Mahindra & Mahindra. According to the report, a winner will be chosen from among those two companies, but instead of Investment Dar's entire 64-percent stake, the winner will get 40 percent equity and 50 percent of the voting rights. Investment Dar will hold onto 24 percent of Aston.
There's some confusion around some of the numbers, however. According to Financial News, though, the stake being offered is 50 percent and Investindustrial, even with a lower bid, might still be the favorite. Investindustrial bought Ducati in 2006, then sold it to Audi for a 300-percent gain in July of this year. Working with another German automaker this time around, it's said that Investindustrial has stressed its commitment to invest in new product, and both reports indicate that it has a tentative deal with Mercedes-Benz to provide Aston access to technology, engines, gearboxes and other parts from AMG. An announcement of the winning bidder could come as soon as this weekend.
http://www.autoblog.com/2012/11/24/a...-equity-house/
11-25-12, 05:30 AM
#4
Moderator: LFA, Clubhouse
I don't think I'd be happy with either of these taking a big stake in Aston Martin. Mahindra speaks for itself, but I also don't think going with MB Is the way to go for engines, ergonomics, or reliability.
11-25-12, 07:02 AM
#5
Speaks French in Russian
11-25-12, 07:40 AM
#6
indeed... just like with Lotus... Toyota will not just spend hundreds of millions because of good branding/name when business is not being run well.
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12-07-12, 08:58 AM
#8
Italian firm agrees to buy 37.5% of Aston Martin
Italian private equity firm Investindustrial has purchased a minority stake in supercar-maker Aston Martin. The 37.5-percent share carries a price of $241 million, while a majority stake is still held by Kuwait's Investment Dar. Aston Martin says this deal will allow the UK brand to pour $1 billion into new product, funding vehicle development through 2018.
The Italian firm beat out Indian truck and tractor producer Mahindra and Mahindra, but some analysts are skeptical of the deal, claiming that it does not account for "scale, access to technology, emissions or entry to new segments." That's especially true since Aston indicates that pen has not been put to paper on a proposed technology partnership between itself and Mercedes-Benz, a provision some analysts expected.
Sit tight, Mr. Bond.
The Italian firm beat out Indian truck and tractor producer Mahindra and Mahindra, but some analysts are skeptical of the deal, claiming that it does not account for "scale, access to technology, emissions or entry to new segments." That's especially true since Aston indicates that pen has not been put to paper on a proposed technology partnership between itself and Mercedes-Benz, a provision some analysts expected.
Sit tight, Mr. Bond.
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