MILAN, Italy (Oct. 13, 2015) — China National Chemical Corp. (ChemChina) either has purchased or secured purchase agreements covering nearly 87 percent of Pirelli & C. S.p.A.'s ordinary shares, according to a statement issued by Marco Polo Industrial Holding S.p.A., ChemChina's Milan-based entity set up to carry out the acquisition of Pirelli.
Marco Polo Industrial Holding secured a number of tranches of stock in the past several days, pushing the number of shares it now controls to nearly 414 million, according to the statement, which was disseminated by Pirelli upon the request of Marco Polo Industrial Holding.
Marco Polo said it intends to pay the owners of the ordinary shares tendered during the offer period on Oct. 20, at which time it will take ownership of the shares.
The purchase price is 15 euros ($17.05 at prevailing exchange rates on Oct. 12-13) per share, valuing the entire share package at slightly more than $7 billion.
Marco Polo also said in accordance with the terms of its mandatory tender offer, it will reopen the offer for five days — Oct. 21-23 and 26-27 — after the scheduled payment date of Oct. 20.
Payment for any shares tendered during this period will be made on Nov. 3.
Marco Polo Industrial Holding is the name of the company that was referred to in ChemChina's original bid agreement as “Bidco.”
ChemChina, through its China National Tire & Rubber Co. subsidiary, holds indirect ownership of Marco Polo Industrial Holding through two other Italian investment vehicles and therefore has been able to oversee the the mandatory and voluntary tender offers for the Pirelli shares.
Once ChemChina, via Marco Polo Industrial Holding, secures control of the shares now being tendered, it will allow ChemChina to move forward with plans to take the Milan-based tire maker private.
It also would trigger a series of moves by ChemChina to restructure Pirelli, primarily involving the integration of Pirelli's industrial tire business — medium truck, agricultural and industrial tires — with those of Fengshen Tyre Co. Ltd., owner and producer of the Aeolus and Windpower brands, Camfin said.