Explaining The New MV Agusta Financial Organization
UPDATE from December 18, 2018: MV Agusta Holding has completed the purchase of shares (25 percent) owned by Mercedes MG. MV Agusta Holding now controls 100 percent of MV Agusta Motor S.p.A.
In a forward-looking statement, MV Agusta said: “The turnaround that started at the beginning of 2016 shifted MV Agusta back to a positive result for the 2017 fiscal year thanks to the success of the new product range, first of all by the launch of the all new Dragster 800 RR, the company has raised the order portfolio higher than its estimated production.
“After having completed the three-cylinder models range, consisting of supersport, naked and sport touring bikes, MV Agusta is concentrating its future investments on the development of an all new 4 cylinder platform of which the first new innovative model will be launched during the year 2018.”
Financial issues have dogged MV Agusta for years, and the economic saga has taken yet another turn. As usual, the details are a bit complex, with various holding companies, investment companies, and investors. This isn’t necessarily a bad thing, though it can be confusing.
Here are eight fast facts to help you understand the new financial underpinnings at MV Agusta.
1. Mercedes AMG has sold its 25 percent share of MV Agusta Motor S.p.A. to MV Agusta Holding.
2. MV Agusta Holding will control 100 percent of MV Agusta Motor S.p.A.
3. MV Agusta President Giovanni Castiglioni’s GC Holding investment company holds a controlling stake in MV Agusta Holding.
4. ComSar Invest will be a strong minority shareholder in MV Agusta Holding.
5. ComSar Invest is an investment fund of Black Ocean Group, which describes itself as “a technology company that builds next generation digital businesses. We look to solve real world problems through technology. Our focus is on digital media, e-commerce, mobile solutions and we invest through our investment arm into disruptive technologies that compliment [sic] our core business. Black Ocean focuses on three major strategies: Mobile technologies and applications, media companies and content, and investment.”
6. Black Ocean Group is part of Ocean Group International, which was cofounded by Oxford-educated Brit Oliver Ripley and Timur Sardarov, a well-connected Russian investor. Ripley is the CEO. Ocean Sky is part of Ocean Group and is one of Europe’s largest private jet companies.
7. Statement from Castiglioni: “The transaction with ComSar Invest in our holding company through a capital increase and the acquisition of the shares previously held by Mercedes AMG in MV Agusta Motor S.p.A., represents an important milestone for our plan which has as a main objective the reinforcement of MV Agusta core business: the production of high-performance, high end motorcycles. In the last 12 months the implemented measures, has brought MV Agusta back in positive cash flow generation, allowing to complete the restructuring plan and to consistently support product development and consolidation of our key markets.”
8. Statement from Sardarov: “MV Agusta is for us the most iconic brand in the industry; a company that in the last five years has invested heavily in new product development creating a extensive, enviable range of motorcycles which results today is a unique asset for a successful future. Our presence in the capital, with a clear long-term vision, as well as in the key management of the company, has the objective, through our core competences and skills to support and strengthen MV Agusta in the coming years consolidating its position of super premium motorcycle producer. We will focus our funding to reinforce MV Agusta sales network and service and our knowledge in the technology fields, web and marketing to reach and enhance new markets, strengthen our digital and social presence enlarging MV Agusta’s consumer base.”
Story from August issue of Ultimate Motorcycling magazine; subscribe through our free app.