Mahindra loses Aston Martin deal to Investindustrial
Indian auto giant Mahindra & Mahindra lost the Aston Martin deal to Italian private equity fund Investindustrial.
New Delhi: Indian auto giant Mahindra & Mahindra lost the Aston Martin deal to Italian private equity fund Investindustrial.
The highly talked about deal was finally signed on Friday where Investindustrial bought 37.5 percent of Aston Martin Lagonda Ltd from its Kuwaiti owner Investment Dar.
Investindustrial is investing 150 million pounds ($241 million) in Aston Martin in the form of a capital increase, reports said.
Mahindra was believed to have made a higher offer, however the auto major reportedly pulled out later owing to the brand's financial baggage.
The Italian group beat Mahindra and Mahindra 0.74 % in a two-way battle to invest in the British sportscar maker.
Reportedly, Aston Martin said the deal gave the group an enterprise value of 780 million pounds, compared to a value of 630 million pounds prior to the agreement.
Aston Martin is owned by a Kuwaiti consortium of financial sponsors led by Investment Dar who bought the company from Ford Motor in 2007 for 479 million pounds.
The iconic sports car brand has made cult screen presence in 11 James Bond films including the latest Skyfall.
With Agency Inputs