Bugatti, the storied automaker behind cutting-edge models like the Veyron and Tourbillon, may soon experience a change in its ownership structure. New reports suggest that private equity firms are now interested in Porsche's 45% stake in Bugatti, a development that could reshape the brand's future.
Earlier this year, Mate Rimac, founder of Rimac Automobili and the current CEO of Bugatti Rimac, offered $1.1 billion to buy Porsche's share in Bugatti. However, as of now, no significant progress on that front has been reported. Meanwhile, another intriguing offer has surfaced. According to a recent report from Bloomberg, private equity firm BlueFive Capital and venture capital firm HOF Capital have joined forces to bid for Porsche's share in the luxury automaker.
A $1.2 Billion Offer in the Works
The proposed deal from BlueFive Capital and HOF Capital reportedly values Porsche's stake at $1.2 billion. In addition to acquiring Porsche's shares in Bugatti, the firms also aim to take over Porsche’s investments in Rimac. A spokesperson for Rimac confirmed to Bloomberg that discussions regarding Bugatti's ownership are ongoing but declined to provide further details. Representatives for both investment firms and Porsche also declined to comment on the matter.
Despite the lack of public confirmation, sources familiar with the negotiations suggested to Bloomberg that an agreement could be reached in the coming weeks, pending clarity on transaction specifics and ownership arrangements.
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The Key Players Behind the Bid
HOF Capital, headquartered in New York City, is led by Onsi Sawiris, the son of billionaire Naguib Sawiris. BlueFive Capital, based in Abu Dhabi, was founded by Hazem Ben-Gacem, a former co-CEO of Investcorp. While both firms have primarily invested in real estate and logistics, adding Bugatti to their portfolios would mark a unique and high-profile expansion into the automotive industry.
Porsche's Financial Challenges
It is unclear why Porsche might be more inclined to consider the private equity firms' offer over Rimac's earlier bid. However, Porsche's recent financial struggles might be a factor. The company has faced significant challenges, with its operating profits reportedly plummeting. Additionally, this shift in ownership could impact Bugatti's future developments, as Rimac had previously indicated that acquiring Porsche's stake would help streamline Bugatti's development processes. Whether private equity leadership would align with Rimac's vision for the brand remains uncertain.
As discussions continue, all eyes are on Bugatti to see how its ownership and direction may evolve in the coming weeks. For now, the automaker stands at a potential crossroads, with its future tied to these high-stakes negotiations.
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