Mahindra – Pininfarnia deal is on the final stage. It can be signed as early as next week.
ET reports that the Mahindra – Pininfarnia deal can be signed anytime soon. ET’s Sources say that the terms for the deal are nearly finalized. Both the parties have agreed upon the terms after months of talks. “It is just a matter of putting stamp on the contract” says ET’s source.
We have received a lot of updates about the Mahindra – Pininfarnia deal throughout this year. The deal is taking baby steps since the beginning of this year after Mahindra approached the designing company with the proposal. Pininfarnia is suffering financial crisis since a very long time. Its debt is nearly equal to its market value of 126 million Euros. The net debt of the company was 47.4 million Euros at the end of September.
The Milan-listed Italian designer’s shares closed down 10% on Thursday after daily MF reported that there are doubts about the Mahindra – Pininfarnia deal. Hence, the deal is switched to fast track as any more time wasted will result in financial losses. As a part of the deal Mahindra has agreed to pay 150 million Euros for paying the company’s debts and provide it with fresh capital for investments in new machines and technologies.
The Italian designer has designed cars for automotive giants like Ferrari, Roll Royce, Cadillac, etc. The firm’s popularity has surged as a result of the manufacturer’s shift of emphasis from designing firms to in-house designers. It was named after the nickname of its founder Battista Farnia.
Mahindra who is now known for buying financially struggling companies after it bought the troubled South Korean Ssangyong Motor. It also acquired major share in Peugeot’s scooter business last year. Mahindra approached Pininfarnia earlier this year. However, the link goes back in 2010 when Mahindra hired Hubert Tassin, former Pinifarnia designer.