Shandong Heavy to buy controlling stake in Italian luxury yachtmaker Ferretti

Shandong Heavy Industry Group (SHIG), a manufacturer of construction and agriculture machinery is buying a controlling 75-per cent stake in Italian luxury yachtmaker Ferretti SpA by taking part in the debt-laden company's debt restructuring.

Under a complex restructuring deal, SHIG's Hong Kong-listed subsidiary Weichai Group will invest €374 million, including €178 million in equity investment and provide debt financing of €196 million for a controlling 75 per cent stake.

After debt restructuring, lenders led by Royal Bank of Scotland, and Strategic Value Partners will invest alongside SHIG-Weichai and both will become 12.5 per cent shareholders.

Through the acquisition, Ferretti's capital will be fully restructured with equity capital increase by €100 million and total debts reduce to a reasonable level at around €100 million, according to a statement from SHIG.

Forlì-based Ferrett, which makes the Pershing, Itama, Riva, Bertram, Mochi Craft and CRN line of yachts, is the world's largest luxury yacht manufacturer, and has some of the world's most advanced naval research and development centers.

Founded by Norberto Ferretti in 1968, Ferretti has a unique portfolio of nine of most exclusive brands. It has over 3,000 employees including a team of around 90 engineers and designers and has 25 production units worldwide.