Tech Mahindra and Mahindra & Mahindra (M&M) have jointly entered into an agreement with Pincar to purchase a controlling stake in Pininfarina.

As part of the agreement, Tech Mahindra and M&M will purchase 76.06% of Pininfarina shares from the current controlling shareholder Pincar, at a price of Euro EUR1.10 (US$1.20) per share.

The investment by Tech Mahindra and M&M will be carried out via a joint venture company JVCo, whose ownership will be held 60 % by Tech Mahindra and 40 % by M&M.

This will be followed by an open offer for all the remaining ordinary shares of Pininfarina, at the same purchase price paid for the shares held by Pincar.  A rights issue to inject funds into the design & styling major will also be undertaken before the end of 2016.

Pininfarina will continue to remain an independent company, listed on the Milan Stock Exchange, with Paolo Pininfarina continuing as the chairman of its board.

Tech Mahindra says it will benefit from the designer’s presence in Italy and Germany, as well as in the US and China, while for Pininfarina, the acquisition will leverage Tech Mahindra’s presence across 90 countries and access to around 780 customers, notes the designer.

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“Pininfarina will add enormous value to Tech Mahindra’s portfolio of engineering services,” said Mahindra Group chairman, Anand Mahindra.

“But just as important is the fact the high-end design credentials of Pininfarina will significantly enhance the design capabilities of the entire Mahindra Group.

For his part, Tech Mahindra CEO & managing director, CP Gurani, added: “Our clients want more from us, consistently. Adding Pininfarina’s design skills to our Integrated Engineering Solutions enables a strong entry into Automotive styling, design & development and reinforces our body engineering capabilities.

“Further, Pininfarina’s 25-year design expertise in industries beyond automotive will give us that winning edge in areas such as aerospace, consumer electronics, architecture & interiors and transportation where we already have a strong footprint.”

Pininfarina declined to comment on the purchase when contacted by just-auto in Italy, but more details from the designer are due to emerge later.