MILAN, Italy (June 29, 2015) — Pirelli & C. S.p.A.'s board of directors has retained Deutsche Bank and Goldman Sachs International as financial advisers on the matter of China National Chemical Corp.'s (ChemChina) proposed plan to acquire a majority stake in Pirelli from Camfin S.p.A.
ChemChina offered to buy Camfin's 26.2-percent stake of Pirelli in March through its wholly owned subsidiary China National Tire & Rubber Co. At the time, the purchase price was $16.25 per share, valuing Pirelli at about $7.7 billion. The transaction is projected to be complete this summer.
The board also has engaged Citigroup Global Markets Ltd. as an independent expert to advise it on formulating an opinion — required under Italian law — on the Camfin deal.
The Chinese group plans to launch a mandatory tender offer for a majority share of Pirelli and potentially take it private to facilitate restructuring once the acquisition of Camfin's stake is complete.
Deutsche Bank and Goldman Sachs also will act as as independent experts — in accordance with regulations established by the Italian stock market governing body Consob — to assist the board in the launch of the mandatory public tender, Pirelli said.
Since the March announcement, ChemChina has struck a deal to acquire Edizione S.r.l.'s stake in Pirelli for the same price of $16.25 per share, which would give the Chinese group a share of more than 30 percent in Pirelli if approved.