MV Agusta Sold for 1 Euro
Harley-Davidson to provide 20 million euro in escrow
According to an 8-K filing with the Securities and Exchange Commission, Harley-Davidson sold MV Agusta to Castiglioni for 1 euro, a nominal fee dwarfed by the US$109 million spent to acquire the Italian brand in 2008.
Harley-Davidson is also putting 20 million euros (US$26.1 million) in operating capital to MV Agusta, with 7 million euro provided immediately and the rest in escrow, available to Castiglioni over a 12-month period.
Castiglioni also waives his claim to any earn-out payment for the shares Castiglioni owned before Harley-Davidson acquired MV Agusta. Under the terms of the original sale, Castiglioni was due a contingent payment in 2016.
In addition to the $109 million spent to acquire MV Agusta, including $70 million to pay off existing debts, Harley-Davidson has written off $162.6 million in taxes for the Italian brand.
This isnt the first time MV Agusta has been sold for 1 euro. In 2005, Malaysian carmaker Proton, which holds majority ownership of Lotus, sold its ownership MV Agusta to Italian finance company GEVI SpA. Proton originally paid 70 million euro for MV Agusta a year earlier.
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