Italian motorcycle manufacturer MV Agusta may be looking to part ways with Mercedes-AMG, with the intent of buying back shares. MV Agusta CEO Giovanni Castiglioni is negotiating a buyback of shares from Mercedes-AMG.
MV Agusta sold close to 9,000 motorcycles in 2015, posting a 30 percent increase over the previous year, but the company finds itself in financial trouble. Castiglioni is struggling to keep things going, with a current debt of approximately 40 to 50 million Euro.
In 2014, Mercedes-AMG acquired a 25 percent stake in MV Agusta, a move seen as bringing financial stability and security for the small Italian motorcycle company. So, now in order to buy back AMG's shares in MV Agusta, Castiglioni will need to find investors who are willing to cover the 15 million Euro loan amount, and then invest in capital to keep MV Agusta afloat. 'Unfortunately, Mercedes-AMG has not turned out to be the strategic partner as I had thought. I am now working to bring new investors in the company. In the meantime, we are carrying out a plan that aims to generate cash and then restructure the debt,' said Giovanni.
Acording to some reports, Mercedes-AMG is willing to buyout Castiglioni's position in MV Agusta, and take full ownership of the Italian brand but Giovanni Castiglioni is not willing to let go.