Italian yacht maker Ferretti on Friday said an independent financial adviser has called Czech investment group KKCG’s offer to double its stake in the firm “not attractive.”
In a statement, Ferretti said the independent board committee reviewing the bid agreed with the adviser’s assessment and recommended that independent shareholders reject the offer.
In January, KKCG launched an offer worth up to 182 million euros ($209.8 million) to double its 14.5% stake in Ferretti and push for changes to a board appointed by the company’s Chinese controlling shareholder.
“In particular, a duopoly of significant shareholding of Ferretti International Holding (FIH) and KKCG Group, but neither holds a majority shareholding, may give rise to significant uncertainty in relation to the company’s long-term business strategy and operational management,” Ferretti said.
The company, controlled by state-owned Weichai Group of China, added that, as of Friday, KKCG had not discussed with any of its directors their potential inclusion in its slate for the board renewal, among other issues, creating uncertainty about the company’s plans.
KKCG was seeking changes to a board appointed by Weichai, which manufactures industrial equipment.
Weichai, which is based in eastern China’s Shandong province, had said it would not support KKCG’s tender offer as it viewed its investment as “long-term and strategic.” It owns 38% of the yacht maker.
Ferretti CEO Alberto Galassi and Italian directors Stefano Domenicali and Pietro Ferrari, who is also a minority shareholder, abstained from the vote on the resolution to reject the offer.
The rejection came less than a day after U.S. investment firm Biglari Holdings acquired a 3.4% stake in Ferretti.
Ferretti shares were recently down 1.5% in Milan.
Source: Reuters.com