An investment vehicle controlled by China National Chemical Corp. (ChemChina) will launch a mandatory tender offer for the remaining shares in Pirelli after taking control of the Italian tiremaker through a deal struck in March.
ChemChina in March agreed to become the majority owner of the world’s fifth-largest tire manufacturer as part of a 7.3 billion euro (US$8 billion) deal.
On Tuesday, Marco Polo Industrial Holding, a company created to facilitate the Chinese takeover, concluded its acquisition of a stake in Pirelli from Italian holding company Camfin, triggering the mandatory takeover bid, Reuters reported.
A Camfin spokeswoman said the tender offer was expected to be launched in September.
State-owned ChemChina holds a 65 percent stake in Marco Polo, with the remainder in the hands of Camfin investors, who include Pirelli boss Marco Tronchetti Provera, Italian banks UniCredit and Intesa Sanpaolo and Russia’s Rosneft, the news agency said.
The tender offer will be launched at 15 euros per share with the goal of acquiring all of Pirelli’s share capital and de-list the tiremaker from Milan’s stock exchange.
Marco Polo also decided to launch a voluntary tender offer on Pirelli’s savings shares.
In a separate statement, Tronchetti Provera, who will remain Pirelli’s chief executive, said Camfin would invest more than 1 billion euros in the tender offer and will keep a central role in the tiremaker’s future shareholder structure, along with ChemChina.
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