Riva boat maker’s CEO hits out at biggest shareholder’s ‘lack of vision’

{"text":[[{"start":8.75,"text":"The chief executive of Ferretti said a “lack of industrial vision” and an aversion to risk at Chinese state-owned conglomerate Weichai was holding back the luxury yachtmaker, in an extraordinary rebuke of the group’s largest shareholder."}],[{"start":22.35,"text":"Alberto Galassi, who was appointed CEO by the Chinese company in 2014, told the FT that “management changes at Weichai have constrained decision-making at Ferretti and the lack of industrial vision is weighing negatively on the group”."}],[{"start":38.3,"text":"The comments by Galassi, who also criticised Weichai’s strategic and capital allocation decisions, come as Ferretti’s two largest investors wage a proxy battle ahead of the Riva boat maker’s annual meeting on May 14. "}],[{"start":50.699999999999996,"text":"Weichai and Czech billionaire Karel Komárek, who respectively own 39 per cent and 23 per cent of Ferretti’s shares, have filed different slates of board candidates."}],[{"start":61.349999999999994,"text":"The Chinese group is proposing to replace Galassi as CEO with Stassi Anastassov, former boss of battery maker Duracell. "}],[{"start":70.5,"text":"“Boards and majority shareholders upgrade leadership when they believe more can be achieved — not less,” Weichai said. "}],[{"start":null,"text":"

"}],[{"start":77.35,"text":"The shareholders have been embroiled in a dispute since December when KKCG, Komárek’s holding company, launched a tender offer to increase its stake in Ferretti and boost the influence it has over strategic direction. The group claims the yachtmaker’s governance is constraining its growth."}],[{"start":96.35,"text":"Komárek said he wants to establish a board “that truly reflects the company’s ownership and is empowered to act”. The Czech tycoon will chair the board if shareholders vote in favour of KKCG’s proposal."}],[{"start":109.89999999999999,"text":"Weichai, which has appointed all nine current directors on Ferretti’s board, exercises de facto control over the company."}],[{"start":117.64999999999999,"text":"In recent years European groups with Chinese state-controlled shareholders have complained that decision-making is slowed by rules binding Beijing-appointed directors, which they say can impinge on their ability to act in the interests of the companies on whose boards they sit."}],[{"start":134.35,"text":"Tyremaker Pirelli has been locked in a tussle for control with state-owned conglomerate Sinochem for years, a dispute that prompted Rome to use its “golden power” to curb the Chinese investor’s influence."}],[{"start":146.54999999999998,"text":"Weichai became Ferretti’s controlling shareholder in 2012, when the company behind Wally yachts was on its knees. "}],[{"start":153.29999999999998,"text":"“Weichai took over Ferretti when no Italian white knight stepped in to save it — the country owes them a lot,” Galassi said. “But times have completely changed.”"}],[{"start":null,"text":""}],[{"start":163.45,"text":"Galassi said Weichai’s decision-making had slowed since the departure of Tan Xuguang, its former chair, in 2024. "}],[{"start":171.39999999999998,"text":"He characterised Weichai’s decision to scrap Ferretti’s security division, which manufactured speedboats for security forces, as a “grave mistake”, and criticised the withdrawal of an announced share buyback in 2024. The U-turn “proved hard to explain to the market”, Galassi said. "}],[{"start":188.34999999999997,"text":"Weichai said the buyback “was not sufficiently prepared to meet the standards required for execution in a public market context”."}],[{"start":195.09999999999997,"text":"“The board evaluates all [capital allocation] options with a strict focus on discipline, credibility and execution readiness,” it said, adding that “the board and the majority shareholder have supported management’s strategic direction and key initiatives with a clear focus on long-term value creation for all shareholders”."}],[{"start":214.49999999999997,"text":"Ferretti’s shares, which had largely traded below their €3 debut price since listing in Milan in 2023, have risen about 40 per cent since the proxy battle erupted. "}],[{"start":225.44999999999996,"text":"Besides Galassi, KKCG proposes retaining two other Ferretti board members: Ferrari heir Piero Ferrari and Formula 1 chief Stefano Domenicali. Institutional Shareholder Services, a shareholder advisory group, on Wednesday said Ferretti investors should back KKCG’s slate. "}],[{"start":244.59999999999997,"text":"The proxy battle comes at a tough time for Ferretti as the outbreak of war in the Middle East and turbulence in financial markets prompt wealthy consumers to postpone orders. Kepler’s analysts estimate the company’s orders will drop 30 per cent in the first quarter, compared with a year ago."}],[{"start":261.4,"text":"Galassi said the difficult backdrop makes it unrealistic for Weichai to rely on organic growth at Ferretti. But proposed acquisitions of distributors and suppliers had failed to win backing from some board members, he said."}],[{"start":275,"text":"“We cannot simply build 100 more boats . . . our business model is based on scarcity,” Galassi said. “We have lots of excess cash . . . It’s a golden opportunity [to spend it on mergers and acquisitions] but there has been no willingness to take the risk.”"}],[{"start":291.25,"text":"Weichai rejected the idea it was opposed to M&A, saying acquisitions are “an integral part of Ferretti’s future growth . . . provided they meet the company’s financial discipline and strategic criteria”."}],[{"start":312.1,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1777547442_9235.mp3"}