January 31, 2018 / 2:17 PM / a year ago

Piaggio Aerospace unit sale going ahead under government rules -source

MILAN, Jan 31 (Reuters) - Abu Dhabi’s sovereign fund Mubadala is pressing ahead with the sale of a unit of Piaggio Aerospace following conditions set by the Italian government under its so-called “golden powers”, a source familiar with the matter said on Wednesday.

Golden powers allow the government to veto or set conditions on asset sales or mergers deemed of strategic national importance.

In October, Rome used the powers over the sale of Piaggio Aerospace’s executive P180 turbojet business to PAC Investments, a Chinese state-backed consortium, amid concerns over the transfer of sensitive technology and potential loss of jobs.

“The sale goes on as planned, according to the terms set by the Italian government, Mubadala has accepted them,” the source told Reuters, adding it was up to the ministry of defence to make sure they would be met.

The investment of most of the sale’s proceeds into Piaggio Aerospace’s military unit and its full separation from its P180 arm, are among the conditions set by the government.

Mubadala said in December it would inject 255 million euros in Piaggio Aerospace as part of the company’s five-year plan.

Piaggio Aerospace will also sell its Maintenance Repair and Overhaul (MRO) business and will evaluate potential partnerships for its P180 business.

Reporting by Giulio Piovaccari, editing by Giulia Segreti and David Evans

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