BEIJING (Aug. 6, 2015) — China National Chemical Corp. (ChemChina) has attracted another financial backer in its bid to buy controlling interest in Italy's Pirelli & C. S.p.A.
China's Silk Road Fund, a recently launched Chinese investment fund, signed an equity investment agreement with ChemChina on June 5 to take a 25-percent stake in CNRC International Holding (HK) Ltd., an entity set up by ChemCHina to acquire, through its affiliates, Pirelli shares owned by Camfin S.p.A.
ChemChina did not quantify the value of Silk Road Fund's investment.
The agreements indicate that ChemChina, Silk Road Fund, Pirelli management and other partners involved in the transaction will join forces in the long-term industrial investment in Pirelli, ChemChina said.
The Silk Road Fund is a $40 billion medium- to long-term investment fund established in Beijing in December 2014. It makes investments through both equity and debt financing. The Chinese government provided the $40 billion start-up funding.
The fund focuses on infrastructure, energy, industrialization and financial cooperation investments that are vital to the connectivity of the Chinese economy with the rest of the world, ChemChina said.