Shareholders in Italian yacht builder Ferretti on Thursday sided with China's Weichai Group in a shareholder feud, ending CEO Alberto Galassi's 12-year tenure as they named a new board, two sources close to the matter said.
The shareholders' vote does not end the uncertainty over governance at Ferretti as KKCG, the Czech investor that led the challenge to Weichai, appeals over the validity of the decision.
Ferretti's shareholder meeting behind closed doors had been called to decide whether control of the yacht builder’s board would remain with its largest shareholder Weichai or shift to a slate of appointees backed by Czech investor KKCG Maritime.
During the annual meeting, KKCG asked the chairman to suspend Weichai's voting rights, citing a potential breach of Italy's "golden power" rules, which give Rome the right to veto or set conditions on corporate deals involving companies deemed strategic to national security.
Alternatively, KKCG called for the meeting to be postponed pending further checks, it said in a statement. Both requests were rejected, sources said.
Weichai's board slate, which put forward former Procter and Gamble executive Stassi Anastassov as CEO, secured about 52 per cent of the vote, one of the sources said, giving it the right to appoint all but one board member.
Around 95 per cent of shareholders attended the meeting, the sources said.
Earlier this year, KKCG Maritime raised its stake in Ferretti to about 23 per cent, aiming to confirm Galassi and reshape the board dominated by representatives of Weichai.
The Chinese group has a 39.5 per cent stake. KKCG Maritime said on Wednesday it had notified the government of possible breaches of the golden power rules, after Italian business daily MF reported that China-linked investors had stepped up share purchases in the yacht maker.
Ferretti controls seven different yacht brands, including Riva and Wally.
It also has a small security division producing patrol vessels, which the company has deemed non-core and sought to sell.
In a statement on Thursday, KKCG reiterated that the presence of such a division brought Ferretti within the scope of the country's golden power rules.
(Reporting by Elisa Anzolin; Editing by Hugh Lawson)
