MILAN — China National Chemical Corp. Ltd. (ChemChina) has notified Pirelli & C. S.p.A. that it and Sinochem Group Co. Ltd. are planning a strategic restructuring, but at this time no details are being released.
Details of the restructuring plan and its implementation are subject to relevant approval and regulatory procedures, Pirelli said, after being notified of the pending action by ChemChina, which is Pirelli's largest shareholder at 45.5%.
Pirelli said it chose to disclose the plan "in order to ensure timely and fair disclosure of information and to safeguard the interest of investors."
ChemChina's notification comes a few days after it and Sinochem disclosed plans to merge their respective agricultural sector holdings into Sinochem's Syngenta Group.
Pirelli said it will "strictly follow" the information disclosure requirements, continue to pay attention to the progress of the matter and perform the information disclosure obligations in a timely manner in accordance with the requirements of relevant laws and regulations.
Sinochem Group is an "integrated operator" in the oil and chemical industry, providing agricultural seeds, agrochemicals and fertilizers and modern agricultural services, and exerting "strong influence" in the non-banking financial service sector.
ChemChina has been a Pirelli shareholder since the third quarter of 2015.
This notification comes six months after major Pirelli shareholders — including ChemChina — said they had agreed to maintain the tire company's ownership structure until 2023.
Major shareholders include: ChemChina-controlled Marco Polo (45.52%); Camfin/Marco Tronchetti Provera (10.05%); and Long-Term Investments Luxembourg S.A. (6.24%). The remaining 38.19% of the shares are free-floating.
The shareholders agreed at that time (July 31, 2019) to extend Mr. Tronchetti Provera's tenure as executive vice chairman and CEO until 2023.