MV Agusta In Talks with New Investors

08/01/2016 @ 2:59 pm, by Jensen Beeler6 COMMENTS

2016-MV-Agusta-Brutale-800-technical-sketch

News out of Italy is that MV Agusta is courting not one, but three potential investors that would takeover Mercedes-AMG’s stake in the two-wheeled company.

As we have covered extensively already, MV Agusta is in quite the precarious financial position, with cash flow issues compounding the unhappy marriage between the Italian motorcycle-maker and the German automobile manufacturer.

MV Agusta would like to divest Mercedes from its business, but that comes with complications involving the immediate payback of debts, should Mercedes-AMG’s position in MV Agusta drops below 20%.

In order to make that divesture, MV Agusta would need not only an investor who would bring sizable amounts of cash to the table to keep MV Agusta’s business running, but one who can also cover the €15 million debt whose payment would be triggered by Mercedes-AMG’s business departure.

With today’s news, MV Agusta has seemingly found a few parties who could fit the bill; and before you ask, no…none of them are Polaris Industries.

Local Italian newspaper Il Giorno reports that MV Agusta is in talks with three potential investors, two are investment funds (one Italian, and one foreign) and the other is an Italian industrialist.

It is postulated that in order for the deal to go through, MV Agusta is offering a larger share in its company than Mercedes-AMG’s 25% position, for a sum that is between €25 million and €50 million, the latter being the optimal amount that MV Agusta needs from investors.

It is therefore possible that we could see MV Agusta CEO Giovanni Castiglioni give up to 49% of his company in order to secure the capital and security that MV Agusta needs to continue its operations.

Il Giorno speculates that we could see a deal materialize by as soon as the end of September.

We then have a couple months to wait to see how this new deal pans out – which is not the only item on MV Agusta’s agenda that we will have to be patient to see. Thanks for the tip Jesse!

Source: Il Giorno