product development centre.
27 July, 2005.
Development Company - a principal investment company
wholly owned by the Government of Abu Dhabi - have
announced the purchase of a five percent stake in Ferrari
by Mubadala from Mediobanca.
The deal sees Mubadala pay €114
million to purchase five percent of Ferrari
from Mediobanca, valuing Ferrari at a total of €2.28
billion. The agreement provides also for an earn out in
favour of Mediobanca in case the IPO of Ferrari is
completed within the next 24 months, at a price ensuring
to Mudabala an Internal Rate of Return above 10%.
"This is the first time that we,
Fiat, have welcomed a non-financial institution to become
a Ferrari shareholder. The key benefit of extending our
shareholder base beyond traditional financial institutions
will be a new opportunity for our development," said
Luca di Montezemolo, Chairman of Ferrari and of Fiat (56%
majority shareholder in the Italian luxury brand).
"We know Mubadala is committed to being an extremely
reliable, stable shareholder and partner to existing
shareholders," he added.
"Moreover, the strategic alliance
with Mubadala, and therefore the Government of Abu Dhabi,
is set to bring us compelling and dynamic new strategies
especially in the Middle East and North African markets.
Our initial areas for consideration will range from the
creation and development of road and racing car testing
initiatives, along with professional driving schools
through to the leveraging of opportunities around brand
experiences and merchandising."
His Highness Sheikh Hamed bin Zayed Al
Nahyan, Chairman of the Abu Dhabi Department of Planning
& Economy said, "This is a sound financial and
strategic investment on numerous levels. It continues our
track record of being involved with premier global
companies and brands who are the leaders in their
"Importantly, it also meets our
own investment objectives that include the creation of
blue chip commercial partnerships that will directly and
indirectly benefit the Abu Dhabi economy," he added.
"Through Mubadala, the Abu Dhabi
Government has a track record of investment, involvement
and positive contribution to premium projects and selected
companies around the world. We are therefore proud of
their involvement in Ferrari," added Mr. Montezemolo.
Piero Ferrari, who owns 10% of the
company, stated: "I know Abu Dhabi well. I have had
the opportunity to meet government representatives, His
Highness and his family and I am therefore happy to
welcome them into the Ferrari fold."
About Mubadala - Mubadala
Development Company is a principal investment company
wholly owned by the Government of Abu Dhabi, with a
mandate to establish new businesses and acquire (wholly or
partly) existing businesses either in the UAE
Mubadala invests in a wide range of
strategic sectors including energy, utilities, health,
real estate, public-private partnerships, basic industries
and services. The company’s goal is to diversify and
further develop the rapidly growing economy of Abu Dhabi,
while achieving solid returns on commercially viable
Mubadala Development Company is chaired
by His Highness, Sheikh Mohammed Bin Zayed Al Nahyan, the
Crown Prince of Abu Dhabi.
About Ferrari - Ferrari has long
combined a legendary status on the world’s racing tracks
with a talent for building unique high performance sports
cars. World renowned for the sporting successes and
technological excellence of its cars, the Prancing Horse
company was founded by Enzo
Ferrari in 1947 in
Success came almost at once with
stunning victories in the Le Mans 24 Hours Race of 1949
and the Formula 1 World Championships of 1952 and 1953.
The huge leap in demand for the Prancing Horse’s GT road
cars, as a result of the brand’s growing international
prestige, led Enzo Ferrari to start the cooperation with
Ferrari’s ongoing growth and
development has been greatly boosted by the success of its
cars in the world’s leading automotive markets, in
particular the United States, Germany, Great Britain and,
of course, Italy. Despite the fact that production has
always been limited to just a few thousand cars a year,
the need to invest in both racing and product development
resulted in the Fiat Group increasing collaboration with
Luca di Montezemolo’s appointment as
Ferrari’s President and CEO in 1991 quickly yielded
further commercial and racing results. A brand new range
of models, Ferrari’s winning of the Formula 1
Constructors’ World Title for the last six years
running, and the Drivers’ Title with Michael
Schumacher, for the last
five, confirms the brand’s status and the ongoing nature
of its achievements.
Ferrari now builds around 5,000 GT cars
per year and is present in 52 markets worldwide. It
maintains this presence both directly - through its
subsidiaries in the United States, Germany, the United
Kingdom, France (covering Spain, Portugal and Benelux) and
Switzerland - as well as through joint ventures (China)
and selected importers.
Ferrari currently produces the
following models: 8 cylinders - F430 coupé and Spider; 12
cylinders - 612 Scaglietti,
575M Maranello and Superamerica.
In recent years, Ferrari has also begun
actively developing the Prancing Horse brand through the
granting of licences as well as the opening of a series of