Mahindra acquires controlling stake in Pininfarina

Tech Mahindra Limited and Mahindra & Mahindra have jointly entered into an agreement with Pincar S.r.l., to purchase a controlling stake in Pininfarina S.p.A., the iconic Italian automotive and industrial design house.

A press release issued in this regard has mentioned the terms and conditions of the acquisition. It states that as part of the agreement, Tech Mahindra and Mahindra & Mahindra will purchase 76.06 per cent of Pininfarina shares from the current controlling shareholder Pincar S.r.l. at a price of Euro 1.1 per share. This investment by Tech Mahindra and M&M shall be done via a joint venture company ("JVCo"), whose ownership shall be held 60 per cent by Tech Mahindra and 40 per cent by Mahindra & Mahindra.

This will be followed by an open offer for all the remaining ordinary shares of Pininfarina, at the same purchase price paid for the shares held by Pincar.  A rights issue to infuse funds into the design and styling major will also be executed before the end of 2016. Pininfarina will continue to remain an independent company, listed on the Milan Stock Exchange, with Mr Paolo Pininfarina continuing as the Chairman of its board.

Commenting on the historic venture, Anand Mahindra, chairman, said, "Pininfarina will add enormous value to Tech Mahindra's portfolio of engineering services. But just as important is the fact that the legendary high-end design credentials of Pininfarina will significantly enhance the design capabilities of the entire Mahindra Group. Given the increasing design sensibilities of today’s consumers, product design will greatly influence customer choice and experience, and hence our success.”