Tata To Buy One-third Stake in Piaggio
Tata Ltd., a UK-based subsidiary of India’s Tata Sons, announced today at the NBAA Convention that it will buy a one-third share of Italy’s Piaggio Aero Industries, manufacturer of the Avanti II turboprop twin. The proposed investment by Tata, which is expected to receive regulatory and other approvals later this week, includes the purchase of existing shares from current shareholders and a new share offering. The Ferrari and Di Mase families and the Mubadala Development Co. of Abu Dhabi, UAE, the current primary shareholders of Piaggio, will also hold about one-third each of the Italian company when the deal is finalized. Under the agreement, Tata will have three of the nine seats on the board of Piaggio Aero and one of the three seats on the company’s executive management committee. The undisclosed increase in share capital will enable Piaggio Aero to expand production rates, offer the Avanti II to new markets and develop new aircraft. Tata will also help Piaggio establish a market presence in India, where the government plans to develop 500 operational airports by 2020. Today there are fewer than 100.