Crain News Service report
BEIJING (April 14, 2015) — China National Tire & Rubber Co. (CNRC) has agreed to buy a 1.57-percent shareholding in Pirelli & C. S.p.A. held by the Italian investment firm Edizione s.r.l.
CNRC, a subsidiary of China National Chemical Corp. (ChemChina), will purchase the 1.57-percent stake from Edizione for 15 Euros per share, the same price it offered to purchase Cam Finanziaria S.p.A.'s 26.2-percent stake on March 23, according to a ChemChina press release. At the time of the Camfin agrement, the price translated to $16.25 per share.
CNRC's agreement with Edizione also contemplates the sale of the exchangeable shares representing about 3 percent of the share capital of Pirelli, indirectly held by Edizione through Schematrentaquattro S.p.A., ChemChina said.
The shares will be integrated into Bidco, a holding company to be controlled by CNRC that will launch a mandatory tender offer in an attempt to acquire a majority of Pirelli shares after the completion of the Camfin agreement at the same 15 Euro per share price. Its agreement with Camfin is expected to be completed by the end of summer.
The agreed-to transfer of Edizione's Pirelli shares to Bidco comes with the condition that Camfin has sold its shares to Bidco, ChemChina said. Edizione may also decide to postpone the transfer of its direct Pirelli stake to Bidco by way of acceptance of the mandatory tender offer.