Amid Geopolitical Tensions and Corporate Strain, KKCG Maritime Ups the Ante in Ferretti's Quandary

KKCG Maritime, the ambitious maritime offshoot of Prague-based conglomerate KKCG, has gone all in on its quest for a near-blocking stake in the Italian luxury yacht maker, Ferretti. This savvy move comes as Ferretti finds itself mired in an increasingly complex and politically charged shareholder landscape. Ferretti’s entanglement in the broader scrutiny of Chinese strategic ownership in Italy following recent allegations of espionage ramps up the stakes even further.

Strategically, KKCG Maritime aims to snap up to 52.1 million shares, roughly 15.4 percent of Ferretti’s total share capital. This tactical manoeuvre would nudge KKCG Maritime’s stake from a healthy 14.5 percent to a commanding 29.9 percent, offering the company greater influence in the boardroom, all for a tidy sum of roughly €182.5 million. It’s a high-risk bet that could pay off handsomely.

Interestingly, KKCG’s proposition is just teetering below the 30 percent threshold that would necessitate a full takeover under Italian and Hong Kong regulations. This appears to be a strategic manoeuvre, as the company has no intentions of eliciting a delisting.

Upon successful completion of the offer, KKCG Maritime plans to wield its newfound clout to champion its nominees for Ferretti’s board at the forthcoming annual general meeting. As Karel Komárek, founder and chairman of KKCG, notes, ‘This offer reflects our aim to build upon our long-standing investment in Ferretti and contribute to its future growth and prosperity, leveraging our proven expertise to bolster Ferretti’s organic and inorganic growth opportunities amid the prevailing global sector dynamics.’

The dynamic power play by KKCG Maritime symbolises a possible proxy contest at Ferretti with the potential to reshape the company’s control dynamics. Previous squabbles with Weichai over capital allocation and a withdrawn share buyback program have already spotlighted the power struggles within the company. As such, KKCG’s gambit arrives at a globally sensitive time, with boardroom tensions soaring owing to recent claims of surveillance on Weichai’s representatives. This ensnares Ferretti in an international mesh of scrutiny and it’s certain to be a tension-fraught journey on the horizon.