ChemChina launches bid for Pirelli
Milan, Italy — Marco Polo Industrial Holding SpA, the company set up by China National Chemical Co. and Camfin SpA to effect ChemChina’s takeover of control of Pirelli & C. SpA, has launched its offer to buy Pirelli common stock at €15 per share.
With 23.4 percent of Pirelli’s stock already under its control, Marco Polo Industrial Holding will seek to buy as many of the remaining 364.3 million outstanding ordinary shares and 12.3 million “savings shares” of Pirelli as possible.
If all shares are tendered at the €15 per-share offer, the deal would be worth $6.35 billion, the offer sheet states.
Pirelli shares closed at €15.04 euros on 11 Aug, down 1.4 percent from the close on 10 Aug 10, according to the stock tracker on Pirelli’s website, which also showed that just 1.4 million shares were traded during the day.
ChemChina, through its China National Tire & Rubber Co. (CNRC) subsidiary, owns 65 percent of Marco Polo Industrial Holding. Camfin, together with a bevy of other industrial holdings, owns the remaining 35 percent.
Marco Polo Industrial Holding also is offering 15 euros per share through a “voluntary” tender offer for Pirelli “savings shares,” of which there are 12.3 million in circulation, the offer states.
ChemChina and Camfin disclosed the details of the formation of Marco Polo Industrial Holding SpA on 5 Aug.
ChemChina also disclosed recently it had gained China’s Silk Road Fund, a recently launched Chinese investment fund, as a financial backer for its Pirelli bid.