The well known Mumbai-based company Mahindra & Mahindra (M&M) is about to venture into another overseas purchase. After taking over the South Korean Ssangyong Motor, well known SUV maker in 2011 in a $520 million deal Mahindra & Mahindra is ready to transact a similar form of business with Pininfarina
According to Reuters report Mahindra & Mahindra has arranged for an official buyout for Italian car designer Pininfarina. as per two sources which have significant information regarding the whole buyout program the company's buyout is to be held before the shareholders meeting that is scheduled on 29 April. Pincar, (the Pininfarina family company) possesses a majority 76-per cent stake among the other shareholders and therefore is Pininfarina's majority investor. The buyout offer by Mahindra & Mahindra is ready to receive a green signal as Pincar is supposedly supporting the project. But the report also refers to the required approval of Pininfarina's thirteen creditor banks fo the complete realization of the proposed offer.
The news of tabling a buyout offer by Mahindra & Mahindra as reported by the Cambiano-based company during the second half of the previous month has revealed a considerable inflation in Pininfarina's stock price. The price has risen by almost 40 per since the report of the buyout offer has started circulating in the market.
Mahindra & Mahindra is Pininfarina’s well known client (M&M).Mahindra & Mahindra and Pininfarina has shared a good partnership in the past as well, for instance they have previously worked together on the trendy electric car, Halo which was featured on the auto show held in USA in 2014.