Italian exotic superbike maker MV Agusta is planning to buy back its 25% shares from Mercedes-AMG. The struggling Italian motorcycle maker is looking for new investors, even as it tries to get back the 25% stake from its German partners. MV Agusta CEO Giovanni Castiglioni is negotiating a buy-back of shares, as reported by Italian daily Il Giornio. Castiglioni, known for not willing to relinquish his tight control over the company says that he wants to get back to becoming the ‘Ferrari of motorcycles’, and needs liquidity to attain the goal.
Even with the motorcycle maker’s big ambition, the road ahead doesn’t seem to be a smooth one. MV Agusta currently has debts in excess of 40 million euro. The company also secured a loan to the tune of 15 million euro from Banco Popolare di Milano on the back of being invested in by Mercedes-AMG. Parting ways with the German carmaker will complicate things further.
MV, as things stand, requires investors who can absorb that debt while also buying out Mercedes-AMG’s stake in the company worth about 30 million euros in 2014 during the initial deal.
All this is happening while MV is struggling to stand true to its legacy of being the one of the finest sports motorcycle makers in the world. MV’s Varese factory is shut down, with about 200 workers expected to be fired. R&D budgets have been relentlessly slashed, along with a huge cut in the brand’s racing operations.
“Unfortunately, Mercedes-AMG has not turned out to be the strategic partner as I had thought. I am now working to bring new investors in the company. In the meantime, we are carrying out a plan that aims to generate cash and then restructure the debt,” said Giovanni.
Does anyone amongst you have about 50 million euros to invest in an Italian exotic bike maker? Would you have invested your money in MV if you had the dough? Do share your thoughts
