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Aston Martin scores bids from Mahindra and UK equity house

Posted Dec 7th 2012 3:45PM

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2013 Aston Martin DB9 - front three-quarter studio view

Three weeks, ago Businessweek reported that Investment Dar, Inc. was looking to shed its majority stake in Aston Martin. The Kuwait-based financial firm is apparently seeking to restructure its debt load and has sought US$800 million for its 64-per cent share in the English automaker. That amount compares to the US$925 million that it took for a consortium, Investment Dar among them, to purchase 100-per cent of Aston Martin from Ford in 2007.

According to reports, bidding for the 64 per cent hasn't gone anywhere near that price, however. Bloomberg (parent company of Businessweek) reports that London-based private equity house Investindustrial has made a bid of nearly 250 million pounds ($401 million U.S.), with their overture trumped shortly thereafter by Indian automaking conglomerate Mahindra & Mahindra. According to the report, a winner will be chosen from among those two companies, but instead of Investment Dar's entire 64 per cent stake, the winner will get 40 per cent equity and 50 per cent of the voting rights. Investment Dar will hold onto 24 per cent of Aston.

There's some confusion around some of the numbers, however. According to Financial News, though, the stake being offered is 50 per cent and Investindustrial, even with a lower bid, might still be the favorite. Investindustrial bought Ducati in 2006, then sold it to Audi for a 300-per cent gain in July of this year. Working with another German automaker this time around, it's said that Investindustrial has stressed its commitment to invest in new product, and both reports indicate that it has a tentative deal with Mercedes-Benz to provide Aston access to technology, engines, gearboxes and other parts from AMG. An announcement of the winning bidder could come as soon as this weekend.

News Source: Bloomberg, Financial News

Image Credit: Aston Martin
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