China’s Shandong eyes majority stake in Italian luxury yachtmaker Ferretti
06 Jan 2012
Shandong Heavy Industry Group (SHG), a manufacturer of construction and agriculture machinery is planning to buy a controlling stake in debt-laden Italian luxury yachtmaker Ferretti SpA in a deal worth about $500 million, Reuters today reported, citing unnamed sources close to the deal.
The deal is expected to be signed on Tuesday in Jinan, capital of China's eastern Shandong province, they told the news agency.
Lenders led by Royal Bank of Scotland, Strategic Value Partners and Oaktree Capital Management will sell their stake to SHG.
The Financial Times had reported last month that the deal would lead to a reduction in Ferretti's debts from €685 million ($876.32 million) to €116 million, and receive €180 million in additional funding.
In July last year, Forlì-based Ferretti, which makes the Pershing, Itama, Riva, Bertram, Mochi Craft and CRN line of yachts, had signed a non-binding memorandum of understanding with SHG for a joint venture, to design, produce and sell motor yachts in China, Hong Kong, Taiwan, Macao and other emerging markets.
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