Tata Ltd., a UK-based subsidiary of India’s Tata Sons, has agreed to take a one-third share of Italy’s Piaggio Aero Industries, manufacturer of the Avanti II turboprop twin. The proposed investment by Tata Ltd., which was expected to receive regulatory and other approvals last month, includes the purchase of existing shares from current shareholders and a new share offering. The Ferrari and Di Mase families and the Mubadala Development Company of Abu Dhabi, UAE, the current primary shareholders of Piaggio, will also hold about one-third each of the Italian company when the deal is finalized.
“The future of Piaggio Aero is bright,” said Piaggio Aero Industries chairman Piero Ferrari at a press conference at the NBAA Convention last month in Orlando. “With the support of world-class investors and strategic partners like Mubadala and Tata Limited, I’m confident we can realize our full potential. We see ourselves as a big company and a big family. This is the most sensible thing we could do.” He explained that he met Ratan Tata, chairman of Tata Sons, “when Ratan was looking to buy a Ferrari. I told him about Piaggio and he became interested. He is interested in aviation and is a pilot himself.”
