Hero Cycles Evaluates Buying Stake in MIFA Again
LUDHIANA, India – India’s biggest bicycle maker is reconsidering a bid for troubled German bike maker MIFA. In 2014 Hero Cycles has been involved in several proceedings for gaining a share in the at that time still listed MIFA.
A Hero Cycles’ team of four top officials is now in Germany for making a fresh bid on the company that currently is in an state of preliminary insolvency.
MIFA is in dire need of an investor and some 4.5 million euro to save it from solvency by March 1, 2017.
Production base in Europe
With the Hero Cycles officials arriving in Germany it looks like that MIFA is not a closed chapter for the Indian company. Fact is that Hero Cycles MD Pankaj Munjal numerous times said to be looking for a production base in Europe; in particular with an eye on its growing e-bike market. The company recently opened a design center in Manchester, UK and acquired Avocet last year.
In a reaction to Bike Europe MIFA spokesperson Christoph Möller says, “we cannot provide information on the investor process in any way. This is due to comprehensive confidentiality obligations. But I’m able to confirm that there are several potential buyers interested in taking over the Mifa business operations.”