Ijud
02-12-04, 09:36 PM
The Star: 2nd. December 2004
Proton rescues Agusta bike
The deal will give Proton a foothold in European market
(MILAN) Malaysian carmaker Proton Holdings Bhd has rescued MV Agusta by pumping 70 million euros (S$152 million) into the Italian motorcycle maker. The deal allows Agusta to pay off its debts and gives Proton a foothold in the European bike market.
In a statement, Agusta said Proton would nominate a new chief executive for the motorcycle maker.
Claudio Castiglioni, who orchestrated Agusta's last revival in 1992, will stay on as chairman of the group and oversee marketing and development.
Under the deal, Proton will subscribe to the entire capital increase and become Agusta's leading shareholder with a 57.75 per cent stake. The stake of the Castiglioni family, which had owned almost the whole group, will be diluted to 37.25 per cent.
The remaining 5 per cent is owned by bike designer Massimo Tamburini and Swedish motorcycle maker Husqvarna.
Agusta, which started life making aeroplanes in 1907, has had a chequered history, which saw it close and sell all its remaining stock in the late 1970s.
In 1992, Mr Castiglioni bought the Agusta brand and stamped it on new bikes which won the admiration of the likes of Formula One driver Eddie Irvine and King Juan Carlos of Spain. It also owns the Cagiva and Husqvarna brands.
But in November 2002, after failed merger talks with Vespa bike maker Piaggio, Agusta went into controlled administration, paralysed by debts reported to be more than 200 million euros.
Earlier last month, the northern Italian group said the Proton deal would provide enough funds to cover debts to banks and suppliers and so pull it out of receivership.
Proton, which also owns British sports car maker Lotus, has been working on the deal for more than a year. Last month, an industry source said the Agusta buy was intended to improve Proton's production expertise, the same logic that fuelled its purchase of Lotus eight years ago.
Proton controls nearly half of the Malaysian car market but as it loses share to foreign rivals it is trying to improve technology through tie-ups with companies, including an assembly deal with Volkswagen.
Proton was advised on the Agusta deal by Societe Generale while the Castiglioni family was advised by Lazard.
The Government of Singapore Investment Corporation is a substantial shareholder of Proton. - Reuters
Proton rescues Agusta bike
The deal will give Proton a foothold in European market
(MILAN) Malaysian carmaker Proton Holdings Bhd has rescued MV Agusta by pumping 70 million euros (S$152 million) into the Italian motorcycle maker. The deal allows Agusta to pay off its debts and gives Proton a foothold in the European bike market.
In a statement, Agusta said Proton would nominate a new chief executive for the motorcycle maker.
Claudio Castiglioni, who orchestrated Agusta's last revival in 1992, will stay on as chairman of the group and oversee marketing and development.
Under the deal, Proton will subscribe to the entire capital increase and become Agusta's leading shareholder with a 57.75 per cent stake. The stake of the Castiglioni family, which had owned almost the whole group, will be diluted to 37.25 per cent.
The remaining 5 per cent is owned by bike designer Massimo Tamburini and Swedish motorcycle maker Husqvarna.
Agusta, which started life making aeroplanes in 1907, has had a chequered history, which saw it close and sell all its remaining stock in the late 1970s.
In 1992, Mr Castiglioni bought the Agusta brand and stamped it on new bikes which won the admiration of the likes of Formula One driver Eddie Irvine and King Juan Carlos of Spain. It also owns the Cagiva and Husqvarna brands.
But in November 2002, after failed merger talks with Vespa bike maker Piaggio, Agusta went into controlled administration, paralysed by debts reported to be more than 200 million euros.
Earlier last month, the northern Italian group said the Proton deal would provide enough funds to cover debts to banks and suppliers and so pull it out of receivership.
Proton, which also owns British sports car maker Lotus, has been working on the deal for more than a year. Last month, an industry source said the Agusta buy was intended to improve Proton's production expertise, the same logic that fuelled its purchase of Lotus eight years ago.
Proton controls nearly half of the Malaysian car market but as it loses share to foreign rivals it is trying to improve technology through tie-ups with companies, including an assembly deal with Volkswagen.
Proton was advised on the Agusta deal by Societe Generale while the Castiglioni family was advised by Lazard.
The Government of Singapore Investment Corporation is a substantial shareholder of Proton. - Reuters