The agreement is dated June 30, but went into effect on Friday, October 8: Camfin today has a total of 18.65% of Pirelli between equity investments and long positions (4.56% maturing in 2023). To get to understand what the financial led to Marco Tronchetti Provera to reach such a significant share of Pirelli we need to take a step back.
In 2015, Camfin And China National Chemical Corporation (commonly known as Chem China) find a deal for a takeover bid on Pirelli which is simultaneously delisted from the Milan stock exchange. He will return two years later, with the Chinese who will be detained a stake of around 46% of the company and Camfin around 10%.
In January of this year, in fact, the historic partnership between the CEO of the Bicocca company and the Niu family – to which the Luxembourg company belongs Longmarch – was further strengthened by joining the private equity “Including the sector healthcare”As stated on the Camfin website. To do this, an ad section is created hoc of the holding, the Camfin Alternative Assets.
But it is in June that relations between Tronchetti Provera and Longmarch’s Chinese intensify further. Yishun Niu, the Chinese billionaire founder of Hixih Rubber Industry Group, former partner of Pirelli with a stake of around 7%, finds an agreement with Camfin for the Chinese vehicle to contribute to Tronchetti’s “creature” Provera 40 million shares, corresponding to 4% of Pirelli.
The partnership envisages that the transfer of Bicocca shares will take place in exchange for a dedicated capital increase reserved as a result of which Longmarch will hold a stake equal to 34.9% of the economic rights of Camfin. In order to determine the share of Camfin due to Longmarch following the capital increase, the Pirelli shares held by Camfin and those to be contributed were valued at € 6.5 per share. Translated: the value of the investment is a total 260 million euros, with a premium on the share exchange price of 1.6 euros.
In total, Marco Tronchetti Provera and its associates of Camfin – the Rovati family, Alberto Pirelli, Massimo Moratti, UniCredit and Intesa-Sanpaolo, as well as Niu – they have one today considerable share of Pirelli. It should be noted, moreover, that in recent months the news had spread, denied by the directly concerned, of the possibility of merger between Pirelli and Brembo, which holds 4.99% of Bicocca.
But it is, in fact, rumors. Who wanted the possibility of creating a pole of high-end auto components made in Italy. In fact, both Pirelli and Brembo found the best segment in which to position themselves in the high-end market. Rather, it seems that Camfin looks kindly on the continuation of the… long walk with the family Niu, with which he chose to differentiate the business moving away from the simple – albeit decisive – participation in Pirelli.