Tata Agrees to Become a Co-primary Shareholder in Piaggio Aero

Genoa: Piaggio Aero, has announced that Tata Limited has agreed to acquire approximately one third stake to become one of the primary shareholders, alongside Ferrari and Di Mase families and Mubadala Development Company, a Press statement said.
Subject to approvals, Piaggio Aero Industries S.p.A. will be owned almost equally by the three co-primary shareholders.
Tata Limited, a UK based subsidiary of Tata Sons, has been representing Tata Sons in Europe since 1907. Tata Sons, based in India, is the promoter of various Tata companies which collectively had revenue of $62.5 billion during 2007-08 and employ around 350,000 people worldwide.
The proposed investment by Tata Limited consists of purchasing existing shares and new share capital subscription. Tata Limited 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 valuation and other financial terms of the investment are not disclosed.
The proposed investment is founded on a shared belief by Tata Limited and Piaggio Aero shareholders that the business aviation market will continue to expand significantly. The increased share capital will enable Piaggio Aero to harness market growth, expanding production rates and offering the P180 Avanti II to new markets.
The industrial expertise residing within the Tata companies will strengthen growth plans, which include establishing a strong market presence in India, where the Government is targeting establishment of 500 fully operational airports by 2020, as compared to less than 100 at present.
02/10/08 Khaleej Times, United Arab Emirates

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Categories: Foreign Oct 2008, Indian Aviation- In General Oct 2008, New Oct 2008