MILAN (Reuters) – Pirelli’s Chinese investors Sinochem and Silk Road Fund have decided not to extend their agreement to work together on some issues at the tyremaker, the Italian group said on Tuesday.
The two investors, which hold stakes of 37% and 9% respectively, had initially signed the shareholder agreement in 2020.
As part of it, Silk Road Fund had committed to follow Sinochem’s votes at Pirelli shareholder meetings on selected matters for a stake comprising 5% out of their total 9%.
The agreement terminated due to its expiry on Sept. 29, Pirelli said in a statement, without providing reasons for the decision.
State-owned Sinochem has a separate governance agreement with fellow investor Camfin, the vehicle of Marco Tronchetti Provera, the Italian businessman who has been in charge of Pirelli since 1992 and now holds the role of executive vice chairman.
Earlier this year the Italian government used so called “golden power” legislation that protects key national assets to impose prescriptions on the proposed renewal of the governance pact between Sinochem and Camfin.
Rome’s intervention strengthened the influence of Camfin over Pirelli even though it just has a 14.1% stake in the company, the tyre supplier for Formula One motor racing.
(Reporting by Giulio Piovaccari; Editing by Keith Weir)
