Investindustrial buys stake in Aston Martin

Investindustrial signs Rs 1,308 crore deal for a 37.5 percent stake in Aston Martin.

Published on Dec 07, 2012 10:55:00 PM

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Italian private equity fund Investindustrial has signed a deal to invest £150m ( Rs 1,308.23 crore) for a 37.5 percent stake in the British sports car company. As part of the announcement, the new-shape company will invest £500m (Rs 4,360.77 crore) in new product development over the next five years.

Mahindra & Mahindra was previously thought to be the favourites in the deal, offering a significantly greater cash injection. Although Investindustrial had reportedly offered a technical partnership with Mercedes and AMG as part of the bid, the announcement of the deal did not mention a technical tie-in with Mercedes’ performance arm.

Investindustrial owned Ducati until earlier this year when it sold the company to Audi for $1.1bn (Rs 9,593.7 crore).

Under the new deal, Investindustrial will become a shareholder alongside current Aston owner Investment Dar.

 

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