Tata, Mubadala Raise Their Stakes in Piaggio Aero
After making a €190 million cash infusion, Tata Ltd., the British arm of the Indian Tata Group, and Abu Dhabi-based Mubadala Development became the main shareholders of Piaggio Aero Industries, while Piero Ferrari remains as a minority stakeholder. Before the transaction, Tata and Mubadala each owned a one-third share in the company.
As a result of the “subscription,” Tata now holds 44.5 percent of the Italian aircraft manufacturer, with Mubadala owning 41 percent and Ferrari 2 percent. The HDI hedge fund, which did not subscribe to the capital increase, still retains 12.5 percent of the company.
According to Piaggio Aero, the share capital increase has been made “in support of the business development and diversification plan of the company focused on the development of new programs and existing activities.”
“We are pleased that Tata Limited and Mubadala Development have chosen to support the business development and diversification plans of Piaggio Aero,” said Piaggio CEO Alberto Galassi. “The new shareholding structure and the increased share capital pave the way for our company’s growth and reinforcing its prominent role in the business aviation and aero engines sectors.”