Ferretti

[gjgm]

Apparently considering an approach by a Chinese company.
Somehow I feel Shandong Heavy Industry wouldnt be quite a sexy on your owner's dressing gown.

 

[MapisM]

Hardly breaking news.
They would be already owned by the Chinese by now, if it weren't for a pretty substantial debt restructuring right in the middle of the negotiation table...

 

[gjgm]

Hardly breaking news.
They would be already owned by the Chinese by now, if it weren't for a pretty substantial debt restructuring right in the middle of the negotiation table...

Fair enough. there was a small piece in FT today, but I confess that I dont spend alot of time looking at debt restucturing of Italian boat builders

 

[MapisM]

Quite understandable.
Btw, they did a relatively good job so far in not disclosing a lot of what's going on...
...though I'm surprised that FT reports that as something new.
What did they say exactly?

 

[gjgm]

Quite understandable.
Btw, they did a relatively good job so far in not disclosing a lot of what's going on...
...though I'm surprised that FT reports that as something new.
What did they say exactly?

Not alot...
Oaktree and SVP have agreed to sell their debt claims to Shandong, giving it 60pct stake in the Groups debts, but the deal would still need support/agreement from those holding the balance of the debt (those familiar with the talks... blah blah...)
And a picture of a big boat with humungous sunpad on the deck with babe in bikini.
It was of course the fascinating detail on the debt restructuring that immediately caught my eye, though.

 

[MapisM]

And a picture of a big boat with humungous sunpad on the deck with babe in bikini.
It was of course the fascinating detail on the debt restructuring that immediately caught my eye, though.

Good to know that also FT eventually understood what really sell newspapers...!

 

[Trundlebug]

And a picture of a big boat with humungous sunpad on the deck with babe in bikini.

Aaah. The Obligatory Oiled Lovely. Of course. Supplied with the boat aren't they? Mine was...

 

[Deleted User YDKXO]

Quite understandable.
Btw, they did a relatively good job so far in not disclosing a lot of what's going on...
...though I'm surprised that FT reports that as something new.
What did they say exactly?

Story here

http://www.ft.com/cms/s/0/24422a5a-20fd-11e1-8a43-00144feabdc0.html#axzz1fxWQJxcK

The JV in China is an old story but a takeover is something new. I'm sure the UK govt and we UK taxpayers would be delighted if our state owned bank, Bank of Scotland, offloads it's 12% debt before the Euro goes tits up and the Italian economy implodes

 

[Deleted User YDKXO]

Full story here if you can't log on to FT site



Ferretti, the debt-burdened Italian luxury yacht maker, is considering an approach by Shandong Heavy Industry Group that would see the Chinese company take control by buying out creditors including private equity groups Oaktree Capital and Strategic Value Partners (SVP).
If approved by shareholders and creditors and accepted by the Chinese central government, the deal would be the latest example of a Chinese investor buying a well-known western brand.
Oaktree and SVP have agreed to sell their debt claims to Shandong, which would give it a stake of about 60 per cent in the group’s debts.
However, the debt restructuring and debt sale require the support of those holding three quarters of its debts, say people familiar with the matter.
Talks continue with other banks, they added, including the Royal Bank of Scotland, which owns 12 per cent of the debts.
Yacht makers were hit hard by the global economic crisis but the wealthiest buyers from Europe, the US, Russia and the Middle East have continued to buy luxury products of the kind produced by Ferretti.
It owns the Pershing and Riva brands, as well as its own Ferretti Yachts.
At the end of October, Ferretti said it had a €465m backlog of orders, 44 per cent higher than at the same time last year.
In the year to the end of August it reported turnover of €521m.
Ferretti and Shandong Heavy announced a memorandum of understanding in July to establish a joint venture in the design, construction and marketing of yachts for China.
Negotiations have since continued on a broader deal to sell the Italian company.
The proposed takeover is the latest twist in a series of restructurings following the purchase of a majority of Ferretti by private equity group Candover for €1.7bn in 2007.
Ferretti agreed a first debt restructuring in 2009 that saw its founder Norberto Ferretti invest fresh money to keep control alongside its banks.
Ferretti declined to comment on Wednesday about the future of the group.
A trend of Chinese companies taking over troubled but well-known Italian yachting brands appeared possible over the last year or so but failed to materialise. The hoped-for pickup in the luxury yacht sector, meanwhile, has been far slower than forecast.
In 2009, Dalla Pieta, the Venetian superyacht maker, was bought by Chinese-owned Millennium Marine, which transferred its moulds and technology to China.
Italian builders were offered lower-paid jobs in China but turned them down.
However, China’s HNA failed in its takeover bid for Cantieri Navali di Lavagna, which was known for its light aluminium superyachts and had filed for bankruptcy.

 

[MapisM]

Story here
http://www.ft.com/cms/s/0/24422a5a-20fd-11e1-8a43-00144feabdc0.html#axzz1fxWQJxcK

LOL, you're not expecting me to subscribe a gossip newspaper just to see some babes in bikini, when we can access the Lounge for free?

Re.RBS, I'm sorry to disappoint you, but I know for sure that they are the major obstacle to the finalization of the deal at the moment.
Talk about greed....

PS: ops, you obviously guessed my position with FT...!
Also, I forgot to mention re. JV vs. takeover: when in a JV one of the two parters has the money and the other doesn't, is there any difference with a takeover...?

 

[PowerYachtBlog]

there is some back logging in that article.

Dalla Pieta is still building in Venice altough it is 90% China own.
Cantieri Navali Lavagna CNL better known as Admiral has been bought over by Tecnomar.
Ferretti Group announced that the deal with Shandog was way under review in October, and in the News on the site it appeared it will be scrubbed off.

China have tryed to buy many Italian builders, including Baglietto and Inrizzardi but there success so far was not very good.
Baglietto have new owners, and Inrizzardi has a new partner.

Things might be easier for the Chinese though especially if the new Tax comes in.

 

[MapisM]

Re.RBS, I'm sorry to disappoint you, but I know for sure that they are the major obstacle to the finalization of the deal at the moment.

Just for the records, this obstacle seems to have been removed (=agreement reached) today.

 

[Deleted User YDKXO]

Just for the records, this obstacle seems to have been removed (=agreement reached) today.

More of British taxpayers' money down the pan, I guess

 

[andy maxime]

and the bankers will still get their bonus!

 

[jfm]

Just for the records, this obstacle seems to have been removed (=agreement reached) today.

Yup, it is all over the newswires and debtwires now...

Troubled yachtmaker Ferretti has been sold to China’s Shandong Heavy Industry Group.

The deal is the latest in a series of restructurings for Ferretti, which was acquired by Candover for €1.7bn in 2007. The company later agreed to a debt restructuring in 2009 in which founder Norberto Ferretti put up capital to keep control alongside creditors.

The debt-laden company has secured a deal with its lenders including Royal Bank of Scotland, Oaktree Capital and Strategic Value Partners, who agreed to sell their stakes to the Chinese construction company, and will see Ferretti's debt fall from €685m to €116m, the Financial Times reports.

The acquirer is committed to keeping Ferretti Italian, and Norberto Ferretti will continue to play a role.


Ferretti is not the first Italian yachtmaker to be acquired by a Chinese company. In 2009, Dalla Pieta was bought by Chinese-owned Millennium Marine.

 

[Nautical]

Had to happen sooner or later and they will not be the only one's. As per a previous post discussed a while ago ( I think it was one of HenryF's threads ) I mentioned the Chinese were coming. Not in a conventional manner but by acquisition, how long will be before a branded product will be coming out of China?, not long methinks, sadly I have to say, but in many cases inevitable.

 

[jfm]

Had to happen sooner or later and they will not be the only one's. As per a previous post discussed a while ago ( I think it was one of HenryF's threads ) I mentioned the Chinese were coming. Not in a conventional manner but by acquisition, how long will be before a branded product will be coming out of China?, not long methinks, sadly I have to say, but in many cases inevitable.

Well yup. Princess, Fairline, Sunseeker, Sealine, Oyster, Bavaria, Canados and more are all private equity owned. The current owners will be looking for exits in the next 2-5 years (in at least one case much sooner) and Chinese buyers will take a look. No matter: we're a small island here in the uk and inward investment is good

 

[PowerYachtBlog]

(in at least one case much sooner)

Seems like you know more then you say with some of these

 

[Deleted User YDKXO]

Yup, it is all over the newswires and debtwires now...

Troubled yachtmaker Ferretti has been sold to China’s Shandong Heavy Industry Group.

and the lenders take a €465m hit on their loans including our own RBS. Thats another few quid added to our debt mountain

 

[MapisM]

Mmm... Who knows, really?
It would be interesting to see the RBS overall P&L towards Ferretti.
I mean, not only the final write off, but also the outrageously high interests, fees, and so forth. Also in the new deal with SHIG, btw.
I really don't know who, between Norberto's boys and RBS, have more reasons to cry...