With the majority vote, Sinochem loses control despite 37% of the shares. A turning point to respond to the Golden Power and strengthen the presence on the American market.
Stop Chinese control over Pirelli. The company’s board today approved the budget under majority and Sinochem, despite its 37% of shares, no longer exerts control. Masa awaited to respond to the Golden Power raised by the government in 2023 and to strengthen and guarantee itself in the American market.
The Board of Directors of 27 March had closed with the postponement to today, to resolve the question of the Chinese weight on the group’s governance. And today the Board of Directors expressed itself by majority. Nine councilors on fifteen voted in favor of approval of the budget and the act of the loss of control by Sinochem. They voted against five councilors of the Chinese area and a member abstained. “Following the issue of the decree of the Presidency of the Council of Ministers Golden Power, the control of Marco Polo Italy (and, for the effect, of Sinochem) on Pirelli pursuant to IFRS 10. At the same time Pirelli did not appear, pursuant to the aforementioned accounting principle, subjected to the control of any subject”, explains a note.
Today’s decision comes at the end of long analyzes conducted together with revision and law firms, after the “weight of the Chinese party in governance” had been raised both by the board of statutory auditors and by management following the intervention of the Golden Power in 2023 from management in an official note. The United States, a strategic market for Pirelli, is preparing to introduce severe restrictions on the use of Chinese technological components in the devices for connected mobility, making it necessary for the Italian historical tire house a clear distancing from Chinese influences, to protect and expand its commercial presence. Sinochem maintains about 37% of Pirelli’s capital, but with today’s decision it reduces its direct weight in the management of the company, without now having the obligation to sell its participation.
In addition to the approval of the financial statements, the board will propose to the shareholders’ meeting the distribution of a dividend per share of 0.25 euros for a total of 250 million euros. A signal of financial solidity, at a time when the balance of the shareholder could suffer new settlements.
