Pirelli postpones board nominations amid ownership probe
Italian government investigating Chinese share in Pirelli under 'golden power' procedure
Milan, Italy – Pirelli & C. SpA has deferred the nomination of its board of directors as the shareholding structure of the tire maker is investigated by the Italian government.
A list of board candidates was due to be issued on 4 June and then to be voted on at the group's 29 June shareholders meeting, said a Pirelli announcement.
However, the process has been delayed by the Rome government’s continuing probe into the level of Chinese ownership of Pirelli, added the 6 June statement.
The tire group will, therefore, seek to postpone the board nominations to a subsequent shareholders meeting, to be held ‘presumably by 31 July’.
Italy's government triggered the ‘golden power’ procedure in April after a Sinochem notification of plans to renew Pirelli's year-old shareholder agreement.
The government has power to impose conditions or veto transactions, investments or corporate resolutions that could threaten Italian public interests.
Chinese group Sinochem currently holds a 37% stake in Pirelli, through its investment vehicle Marco Polo International.
Other major investors include Silk Road Fund (9%), Camfin (14.10%, LongMarch (3.68%) and Brembo (6%).
The remaining shares are mainly owned by institutional investors and as well as retail investors, among others.