Pirelli to discuss real estate group spin-off
Pirelli & C. shareholders will meet next month to discuss the separation of the company's tire and real estate asset management divisions, including stock issues related to the coming split.
The meeting, which is scheduled for July 14 in Milan, Italy, "shall discuss and resolve upon the proposed cancellation of the nominal value of the ordinary and saving shares of the company," say Pirelli officials, "and on the reverse stock split grouping the shares in a ratio of one ordinary share or one new saving share for every 11 shares."
Also during the meeting, shareholders will discuss the real estate division's spin-off.
"A reduction of the share capital is expected for an amount corresponding to the value of the stake held (in the real estate division) being assigned to the shareholders."
Spinning off the real estate group will allow Pirelli to focus on "its core industrial activities in the tire industry." The action also will simplify the corporate structure of Pirelli & C. SpA, the parent company of Pirelli Tire North America.