March 20, 2014
Russian oil company to buy stake in Pirelli
Russian oil company Rosneft has agreed to buy a 50% stake in the holding company which owns 26.2% of Pirelli & Cie SpA.
The deal changes the structure of Pirelli's holding company but management and governance of the Italian tire manufacturer remain the same, according to a press release issued by investor group Nuove Partecipazioni and the Italian banks involved.
The agreement dissolves Lauro61/Camfin, which owns 26.2% of Pirelli, and creates a new holding company.
Rosneft will own 50% of the new holding company and Nuove Partecipazioni, an investment group owned by Pirelli Chairman and CEO Marco Tronchetti Provera, will have 80% ownership.
The Italian banks Uni Credit and Intesa Sanpaolo will each have 10% ownership. Italian private equity fund Clessidra will sell its stake in Lauro61/Camfin. The new company will hold the 26.2% stake in Pirelli formerly owned by Lauro61/Camfin.
According to the press release, the agreement's objective is to develop Pirell's activities and business and strengthen its commercial network through Rosneft's widespread presence across the territory.
Rosneft and Pirelli have existing marketing and commercial agreements to sell Pirelli tires at the Russian company’s chain of gasoline stations and to cooperate in the research and development of synthetic rubber.
Provera will continue to lead Pirelli, according to the press release:
“It is foreseen that Pirelli's governance will remain unchanged and centered on the fundamental guiding role of the board of directors, in line with international best practices. All strategic matters, the definition of business plans and Pirelli's budget will be submitted to the board by the chairman and CEO, and require majority approval, as is already the case today. The chairman and CEO indicated by Nuove Partecipazioni will have full powers over the day-to-day management of the company.”