Company Acquires Approx. 1/3 Stake In Planemaker
The cat was already out of the bag by the time Piaggio Aero
executives had the chance to share their big news at NBAA 2008...
as news of the company's newest shareholder had already made the
rounds in the financial wires last week.
Piaggio introduced S.A. Hasan, Managing Director of Tata Limited
UK, a branch of India's massive Tata industrial conglomerate. Tata
Ltd. will acquire a roughly 1/3 stake in the Italian planemaker,
complementing current stakeholders Mubadala Development of the UAE,
and the Ferrari and Di Mase families.
"We are really honoured that Tata Limited has chosen to invest
in Piaggio Aero Industries, becoming our co-primary shareholder,"
Piero Ferrari, Piaggio Aero Industries Chairman, said last week.
"We are heavily engaged in strategic planning for the development
of the company. Tata Limited’s involvement in our projects
would be extremely gratifying and allow us to increase the success
of recent years. The future for Piaggio Aero is bright and with the
support of world-class investors and strategic partners like
Mubadala Development Company and Tata Limited” .
During Sunday's formal announcement at NBAA, Tata Limited UK
Managing Director S.A. Hasan couched the importance of the
announcement in stark terms. "Today is my 39th wedding anniversary.
My wife's in London, and I'm here," he told attendees, to
Tata's investment injects a healthy dose of capital into Piaggio
Aero, as it works to ramp up production of the popular, but
labor-intensive, P180 Avanti II. Piaggio officials report a roughly
two-year backlog, based on current production goals of delivering
30 aircraft in 2008, increasing to 38 in 2009 and 45-50 in
In return, Tata's involvement in Piaggio bolsters that company's
industrial offerings -- giving it a small, but significant,
presence in the global aircraft marketplace. Hasan added the
partnership will also open new markets for the Avanti II, India
being but one.
Officials with both entities said the investor has already
won regulatory approval, with the formal go-ahead expected later