Countdown to the reaction of the Pirelli stock tomorrow on Piazza Affari after the move by Marco Tronchetti Provera who, through his holding Camfin, and with two separate operations, increased the stake held in the Bicocca company to approximately 20.58% of the capital. This is what we read in a joint press release issued by Marco Tronchetti Provera Spa (MTP) and Camfin.
The predictions of Il Sole 24 Ore were thus confirmed, which had spoken of a double operation to increase Pirelli’s stake in Camfin and Mtp Spa from 14% to approximately 20%.
Pirelli: Marco Tronchetti Provera moves into the capital. The two operations
In the note, issued by Camfin and Mtp Spa today evening, Monday 8 January, with the markets closed, we read that the boards of directors of Marco Tronchetti Provera & CSpA (Mtp Spa), of Camfin SpA, of Camfin Alternative Assets (CAA), of Longmarch Holding Srl and of Longmarch Holding Hongkong Ltd meeting today, “have approved two operations which lead Camfin and MTP SpA to strengthen their stake in Pirelli”.
“Following these operations, the control chain headed by MTP SpA – states the press release – holds a total share of approximately 20.58% of Pirelli, thus strengthening the role of Camfin and MTP SpA as stable shareholders and reaffirming the trust and commitment in supporting Pirelli’s industrial projects”.
The two operations that allowed Tronchetti Provera and the Camfin holding company of the control chain to gain a stake in Pirelli are the following.
On one side, MTP SpA, through a capital increase, has acquired a stake which, through statutory mechanisms, guarantees control of Longmarch, a vehicle owned by the Chinese Niu family.
A move that guaranteed Marco Tronchetti Provera’s control of the Longmarch company and, therefore, of the 3.68% that the group holds in Pirelli.
“MTP SpA takes control of Longmarch, owner of 3.68% of Pirelli“, we read in the press release, which underlines how this operation – governed by an agreement signed today between CAA, Camfin, LMHK, Longmarch and MTP SpA (‘Agreement’) – is based “on the twenty-year partnership between Dr. Tronchetti Provera And the Chinese entrepreneur Mr. Niu and is consistent with the original provisions of the agreements signed in 2020 between Camfin and Longmarch (‘ISA 2020’ then amended on 30 June 2021 ‘ISA 2021’), which provided for Longmarch’s commitment to negotiate in good faith an agreement regarding the contribution of 3.68% of Pirelli in the Camfin group”.
With the other and second operation Camfin Alternative Assets, controlled by Camfin, purchased 2.8% of Pirelli.
The purchase of the share took place “pursuant to the resolution of the Camfin Board of Directors communicated to the market on 19 September 2023 which authorized the purchase of Pirelli shares up to a maximum of 5% of Pirelli’s capital within one year of the resolution”.
“The purchase – we read again in the note from Marco Tronchetti Provera’s company – was financed through a capital increase of CAA equal to 125 million euros, including share premium, subscribed for 17.3 million euros by Camfin and for 107.8 million euros by Longmarch”.
The agreement implies that, “at the end of this operation, CAA (Camfin Alternative Assets), transformed into a limited liability company, will remain, through statutory mechanisms adopted in the context of the operation pursuant to the Agreement, 51% controlled by Camfin and 49% owned by Longmarch”.
More Italy in the capital of Bicocca. That pact with Brembo
It is thus strengthened with the move of Tronchetti Provera Italy’s weight in Pirelli.
The statement effectively made it known that the consultation agreement for the vote in the Pirelli assembly with Brembo and Next Investments relating to the 6% of Pirelli held by the Bergamo group remained unchanged, underlining how this agreement includes “Brembo’s commitment to adapt its vote to that of Mtp spa-Camfin, after having consulted on the topics raised from time to time at the agenda of the ordinary and/or extraordinary meeting of Pirelli”.
The Pirelli stock, in the wake of the rumors reported by Il Sole 24 Ore, closed today’s session on Piazza Affari up more than 3%, to 4.984 euros.
Worth noting the move of the Meloni government which, in mid-June, had announced the exercise of the Golden Power over Pirelli, with the aim of preparing a network of overall measures to protect the autonomy of the company and its management as well as to protect technologies and information of strategic importance owned by the Company.
With the move the Italian government ensured that the Camfin holding, controlled by the CEO of Pirelli, Marco Tronchetti Provera, had the right to appoint the next CEO and four members of the Board of Directors.
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(updating)