Pirelli Investors Renew Shareholder's Contract Up Till 2023
Published On 02-Aug-2019 01:50:08
Pirelli's top stockholders, including Italian investment vehicle Camfin and Chinese state-owned Silk Road Fund, are in talks of renewing their current contract. This agreement has been scheduled to terminate in spring next year. Chinese chemicals association ChemChina has pledged to retain its significant stake in tyre-maker Pirelli until 2023, increasing a shareholder contract that will make sure that the associated investors maintain command of the Italian firm.
At the beginning of this year, rumours were spread over a probable settlement by state-owned ChemChina to cut its stake, but Pirelli's Chief Executive Marco Tronchetti Provera rejected them as sheer speculation. Camfin and ChemChina stated in a joint statement on Tuesday that under the new agreement, Tronchetti Provera, one of Italy's best-known marketing leaders, will remain to head Pirelli and further support his successor by October 2022.
Since Pirelli went unrestricted again in 2017 after getting delisted in 2015, ChemChina and Silk Road Fund, collectively hold about 45.5% in the organisation while Camfin holds about 10% and Long-Term Investments Luxembourg SA (6.24%). The remaining 38.19% of the commissions are free-floating. Camfin and Marco Tronchetti Provera said in a release that shareholders are to sign a contract 1 Aug to retain the shareholder structure, which has remained in place since August 2017.
Moreover, Pirelli lowers FY sales guidance due to a deficiency in the actual equipment segment. The tyremaker said that revenues would rise this year between 3% and 4%. It had earlier estimated a growth rate for its sales of between 4% to 6%. The organisation added its adjusted operating profit margin would match or exceed 19 per cent in 2019, versus preceding guidance at around 19%.