Malaysia's Proton Holdings Bhd. plans to sell its 57.8% stake in MV Agusta Motor SpA to Italian investment company Gevi SpA for one Euro ($1.19).
Gevi will assume MV Agusta's $126.8 million debt and $38.5 million working capital requirements, Proton officials said in a prepared statement.
Proton, which also owns car-maker Lotus Group International, announced a $ 3.3 million dollar net loss in its first quarter ended June 30, and a $40.8 million loss for its second quarter ended September 30. Officials expected to announce further losses through the fourth quarter as the company continued to incur debt stemming from MV Agusta.
Proton purchased its stake in MV Agusta in October 2004 for $59.32 million by underwriting the Italian company's loan from Citibank. The new financing saved MV Agusta when a court in Italy subsequently dropped bankruptcy proceedings against it.
Read more about MV Agusta in the January 23 issue of Powersports Business magazine.
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