MV Agusta is back in the news again. This time though not for its products. The financially troubled Italian bike maker is being wooed by not one but three investors. It is no secret that MV Agusta is not happy with the Mercedes AMG deal it has in place now. In fact, Giovanni Castiglioni, the company CEO, wants to buy back the 25 per cent minority stake the German brand has.
That is easier said than done. For if he somehow manages to cough up the moolah to buy back the shares, the company will be forced to payback its debts as well. BikeAdvice understands that the debt will have to be paid as soon as Mercedes’ stake goes below 20 per cent.
An Italian publication Il Giorno reports that two of these are investment funds (one of which is an Italian) and also an Italian industrialist. So is the Polaris group out of the contention list? While Mercedes had invested around 20 million euros back in 2014,we expect to buy their stake the investor may have to shell out anywhere between 25 to 45 million euros. The debt of 15 million euros will also have to be restructured.
The report adds that a new deal is expected to be materialised as soon as September. But can a deal of this stature be signed for a mere 25 per cent stake? That is why I wouldn’t be surprised if the Castiglioni family is ready to let the new investor have a bigger share. And considering the different way MV Agusta sees the market, it will be very essential that the new investors follow their philosophy.
What about you guys? Do you think MV Agusta can emerge stronger of this mess or will it falter?