"The operation, for a total of approximately 150 million euros, will allow the company to emerge with a complete rebalancing of the debt exposure, with settlement and write-off of a portion equal to almost 60% of the current debt, while the debt residual will be rescheduled for 10 years and guaranteed by the Mahindra group”. Thus the CEO of Pininfarina, Silvio Pietro Angori, immediately commented on the sharp drop in Pininfarina shares (-68%) after the announcement of the deal with Mahindra.
Angori added that “the company will also be provided with new capital for a minimum of 20 million euros through a capital increase and further very significant financial contributions deriving from commercial agreements on the use of the brand. Therefore, the reason for the significant drop in Pininfarina shares on the Stock Exchange is not understood, also taking into account the fact that the investor, in addition to financial contributions, will contribute with his wealth of customers and services, which will be offered to the market jointly. This transaction allows the creation of a design and engineering group capable of competing with the largest global competitors with the distinction brought by the Pininfarina brand and the cost-competitive engineering services provided by the Tech Mahindra group”.
On the other hand, Mahindra & Mahindra will launch a free-float tender offer at 1,1 euros per share, while on Friday the stock closed at 4,2 euros.
