China’s Sinochem Holdings Corp, the biggest investor in Pirelli & C SpA, is considering selling its entire 37% stake in the Italian tyremaker, Bloomberg News reported on Wednesday, citing people familiar with the matter.
The Chinese state-owned oil-to-chemicals group is in the early stages of reviewing its holding in Pirelli, the report said, adding that Sinochem may also sell a partial stake or divest over time on the market.
Sinochem did not immediately respond to a Reuters’ request for comment, while Pirelli was not immediately available for comment.
ChemChina, which in 2021 merged with Sinochem to form Sinochem Holdings Corp, became Pirelli’s leading investor in 2015.
It has been in a shareholders’ pact governing the company with Camfin, the vehicle of Pirelli’s Chief Executive and Executive Vice Chairman Marco Tronchetti Provera, which currently holds a 14% stake.
Sinochem and Pirelli last year extended their shareholder’s agreement from spring 2023 to spring 2026.
Milan-listed shares in Pirelli fell as much as 4.3% after the report was published, but reversed losses to trade 1.1% higher by 1530 GMT, outperforming Italy’s blue chip index.
Pirelli, which manufactures tyres for high-end carmakers such as BMW and Audi and is the sole supplier of Formula One tyres, has a market value of around 4.7 billion euros ($5 billion).
Its shareholders also include China’s Silk Road Fund, with a 9% stake, and Italian premium brake maker Brembo with around 5%.
Source: Reuters.com