The rumors have been revolving the sale of the financially distressed Italian design house Pininfarina have been around for long, but it appears now India’s Mahindra is ready to make the purchase in a matter of weeks.
The indebted Italian car designer Pininfarina will be sold to Indian automaker Mahindra and Mahindra during the next couple of weeks, according to three persons that have knowledge of the matter and talked to Reuters, meaning a possible official announcement could come as fast as next week during the 2015 IAA Frankfurt motor show. Pininfarina, known for stylish and spectacular designs for brands such as Ferrari, Maserati, Rolls-Royce and Cadillac, has seen its shares jumping lately as the reports lend weight to the Indian carmaker’s salvation move. Two of the sources, which refrained from being identified because the negotiations are still private, have indicated the gathering with Pininfarina’s creditor banks could take place as soon as next week. The creditors would be offered certain options – rescheduled debt reimbursement to 2025 or immediate payment – though the latter only happening for half of the owned liabilities. “The ball is in the court of the Pininfarina banks now,” commented one of the people.
Another person added the Pininfarina family would remain involved in the daily activities of the company management following the purchase and retain a small share stake as well. Another report, coming from unnamed sources in financial daily Il Sole 24 Ore added an “investment agreement” could be signed within days by the two companies, enabling Mahindra to assume control over the Italian firm.