Tata and Mubadala become main shareholders in Piaggio Aero

Piaggio P-180 Avantis

Tata and Mubadala Development Company now own 85% of Italian aircraft manufacturer Piaggio Aero

Piaggio P-180 Avantis

India’s Tata Group and Mubadala, the sovereign wealth fund of Abu Dhabi, has become the majority owners of Italian aircraft company Piaggio Aero.

The two companies became the largest shareholders after buying into a €190 million rights issue on October 31. Tata Limited, the UK subsidiary of Tata Group, now holds 44.5 per cent of Piaggio Aero’s equity, with Mubadala owning 41 per cent and Piero Ferrari 2 per cent. HDI hedge fund, who did not subscribe to the capital increase, retains 12.5 per cent of the company.

Alberto Galassi, chief executive officer of Piaggio Aero said: “We are very pleased that Tata Limited and Mubadala Development Company have chosen to support the business development and diversification plans of Piaggio Aero”.

“The new shareholding structure and the increased share capital pave the way for our Company’s growth and reinforcing its prominent role in the business aviation and aero engines sectors,” Galassi added.

Piaggio Aero will be attending the Dubai Air Show 2013 and is exhibiting on the Mubadala stand during the show.