TRGI Announces Strategic Restructuring of Board of Directors
30 September 1999
TRGI Announces Strategic Restructuring of Board of Directors
NEW YORK--Sept. 29, 1999--Trident Rowan Group, Inc. (OTC BB: TRGI) today announced plans to propose to its shareholders a restructuring of its Board of Directors to give more prominence and representation to its two largest shareholders, reflecting their respective ownership interests in the Company. The restructuring reflects the Company's new strategy, which includes a greater focus on Moto Guzzi Corporation (OTC BB: GUZI), of which it owns approximately 60%. Moto Guzzi was taken public nearly six months ago.The Company will shortly propose to its shareholders a board comprised of Mark Hauser, Gianni Bulgari, Emanuel Arbib, Howard Chase and three prominent independent directors. In addition, the CEO position will be assumed on a shared basis between Mr. Hauser and Mr. Arbib. The restructuring effort is a direct result of a recent agreement signed by the Company and a number of principal TRGI shareholders including Mark Hauser and Gianni Bulgari, all of whom are strongly committed to working together to build the value of Moto Guzzi Corporation and in turn TRGI.
The addition of the new board members is one of several methods by which TRGI plans to increase shareholder value. As additional support, the shareholders have recently invested further capital into Moto Guzzi. In addition, by utilizing part of the proceeds of the asset liquidation program being undertaken by TRGI, the Company has recently made a US$3 million one year loan to Moto Guzzi.
"There have been distracting rumors in the Italian press focusing on alleged internal differences between Mr. Bulgari and myself. While we may have different backgrounds and styles, we have always shared and continue to share a common goal to build the value of Moto Guzzi and hence TRGI," said Mark Hauser, Trident Rowan Group Chief Executive Officer. "TRGI and Moto Guzzi present a very exciting opportunity, one with promise and future. I do not believe TRGI's current share price is in any way reflective of the value of the company's underlying assets."
"Since I joined Mr. Hauser in this investment almost two years ago, we have made significance strides in building Moto Guzzi including the introduction of a new management team, the infusion of capital and the initial implementation of a jointly developed five year plan. We are definitely moving in the right direction. We look forward to building and enhancing the company together as a team," said Gianni Bulgari. New models recently launched by Moto Guzzi have been enthusiastically received especially in the US market as witnessed by a strong sales growth and wide acceptance of new models which have appeared on the cover of several specialized magazines in the last few weeks.
Emanuel Arbib, co-CEO of the company stated, "As part of the plan agreed by TRGI's principal shareholders and the company, TRGI expects to complete in the near future its non-core asset disposal plan, which has already resulted in the sale of several real estate assets located in Italy. Further, we have collected most of the outstanding tax receivables and are in various stages of negotiations over the sale of the remaining non-core assets."
TRGI is a holding company that, through subsidiaries, controls Moto Guzzi, the Italian manufacturer of luxury and high performance motorcycles.
This press release contains statements of a forward-looking nature relating to future events. Shareholders are cautioned that such statements are predictions and that actual events may differ significantly.