Shandong Heavy Industries of China buys into Ferretti
Published: Sunday, 01 January 2012
The deal has Shandong buying Ferretti from its lenders with a writedown of €465 million of debt, according to business media. Shandong agreed to pay €220 million for the company. Ferretti had ceded company to control to lenders in 2009 in the wake of the 2008 financial crisis. So far, Ferretti has declined to officially comment on the deal, though more news is expected in January.
The company expects to continue its work building yachts in Italy. Ferretti is also expected to get a €116 million loan from the Industrial and Commercial Bank of China, as well as an extra €80 million line of credit from Shandong, and €100 million of new equity from the Chinese firm. Norberto Ferretti is expected to remain as chairman of the company. Some insiders reportedly feel that the deal will allow Ferretti to expand more aggressively in Asia’s growing market.
Shandong Heavy Industry Group reported profits of over RMB10 billion in 2010, while its revenue was in excess of RMB100 billion, nearly double its take in 2009. This is not Shandong’s first foray in the yacht building market – the group acquired skills in yacht engine manufacturing with the acquisition of a French engine company for three million euros in early 2009, according to Chinese portal Sinocast.