The bidding process for the sale of Piaggio Aerospace is reopening after negotiations with a single prospective buyer faltered and the terms of that buyer had fallen outside of the parameters of the tender, Piaggio Aerospace extraordinary commissioner Vincenzo Nicastro reported. “Negotiations have simply stalled, as no binding offer has ever been submitted,” Nicastro said.
Piaggio, which entered extraordinary receivership in late 2018, had originally attracted 19 expressions of interest for the acquisition of the corporate assets of Piaggio Aero Industries and Piaggio Aviation, the two companies operating under the Piaggio Aerospace brand. That was narrowed to four earlier this year and in July Nicastro obtained approval from the Italian Ministry of Economic Development to negotiate with a single potential investor, reportedly a consortium headed by the Swedish fund Summa Equity.
The exclusivity, however, expired on September 15 after “no formal step has been taken from their side,” Nicastro said. “The potential investor made us just aware of what the conditions would be for the purchase. These conditions were…not consistent with the tender rules they had formally accepted and were linked to events that were difficult to happen.”
He said in light of those developments and in agreement with the Italian Ministry of Economic Development, “we decided therefore to start discussions with other parties interested in purchasing the company assets.”
He is anticipating tighter deadlines for the next rounds, including for both due diligence and the submission of binding offers. Details for bidding are anticipated in the next few weeks.
Nicastro is encouraged, however, that Piaggio appears to be in a stronger position for a new buyer with employment currently numbering around 900 workers and the company completing one of its best financial years in recent history, including an expected turnover of €150 million ($169 million) and a €500 million order portfolio. In addition, another €180 million in orders are in the process of being finalized and should be announced shortly, he said.