Dubai Airshow

Piaggio increases capital, Tata now first shareholder

 - November 17, 2013, 1:45 AM
Piaggio Aero has raised more equity to fund projects like the P.1HH Hammerhead. Photo: David McIntosh

Italy’s Piaggio Aero Industries (Stand 1906) announced before the Dubai Airshow that India’s Tata group is now its largest shareholder, with 44.5 percent of the company’s new equity.

The shareholders assembly had issued a resolution to increase the equity by €190 million (approximately $256 million). Following the move, Tata Limited, a British subsidiary of the India Tata group, Abu-Dhabi-based investor Mubadala and Piero Ferrari subscribed to the capital increase. The latter two shareholders now own 41 percent and 2 percent of the aircraft manufacturer, respectively. The HDI hedge fund, which did not subscribe to the capital increase, retains 12.5 percent.

The increase is supposed to support the business development and diversification plan, notably new programs. “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 engine sectors,” said CEO Alberto Galassi. A spokesman also referred to Piaggio’s recently unveiled intelligence, surveillance and reconnaissance (ISR) project. He stopped short, however, of saying whether Piaggio is ready to launch a business jet.

Here at the Dubai Airshow, Piaggio is exhibiting a mockup of the new P.1HH Hammerhead military unmanned version of the P.180 Avanti twin turboprop in the medium-altitude, long-endurance ISR category.