Pirelli « is no longer Chinese control », but Beijing votes against and attacks: « We still have control »
The company’s note and the outlets in the USA. Green light to the accounts, with dividends for 250 million
Sinochem loses the control of Pirelli, of which the first shareholder remains with 37%, but disputes the position taken yesterday by the Bicocca board, who by majority approved the financial report 2024 with the indication of the decline of control by the Chinese members. The decision is linked to the constraints imposed by the Government with the Golden Power, which have subtracted from Sinochem Governance powers on Pirelli’s strategic subjects. The board of statutory auditors and management led by the executive vice -president, Marco Tronchetti Provera, had raised the matter, explained the Milanese group yesterday in a note in which it shows that « the decision was also taken in compliance with the Consob provision that had postponed to the board of directors an assessment in this regard to be conducted in application of the IFRS 10 international accounting principle ».
The vote against the Chinese councilors
The Chinese councilors – with the exception of the independent Alberto Bradanini and Marisa Pappalardo indicated by Sinochem who voted in favor and of Grace Tang who abstained – they voted against « due to the declaration of cessation of the Control of Sinochem on Pirelli pursuant to IFRS 10, not sharing the relative reasons ».
In a note Sinochem explained its opposition: « The company Marco Polo International Italy srl ( » MPI « ) – through which Beijing controls 37% of Pirelli – expresses profound disappointment and firm opposition regarding the assessment on the control expressed by Pirelli » and underlines that « MPI continues to hold a relevant percentage for the exercise of a dominant influence in the ordinary assembly » of Pirelli » To have Pirelli control « while not exercising » management and coordination activities « in implementation of the decree on the Golden Power.
Sinochem: « Respect the Italian laws »
Sinochem also underlines that he has « always strictly respected Italian and foreign laws, and we will continue to do so with a spirit of collaboration with all the competent authorities ensuring the natural protection of the interests of MPI and always preserving the development and growth of Pirelli », without prejudice to « that MPI has valid elements to support the permanence of its control also pursuant to the IFRS 10 ». In his close tour Pirelli replied « the correctness of the analyzes conducted by management and approved by the Council », underlining that the Golden Power has foreseen « a network of measures overall operating to protect the autonomy of Pirelli & C. Spa and its management ».
The Governance node
Management not appointed by the shareholder Sinochem and whose autonomy and continuity are to protect Pirelli industrial culture « .
The theme of governance, therefore, remains open. The go -ahead for the 2004 budget and the dividend proposal of 0.25 euros, for a total of 250 million, allow to restore normal corporate activity. But several issues to be clarified remain on the table, starting from the possible stop to the sale of Cyber Tyre Pirelli in the USA, linked to the veto on the technologies of Chinese producers imposed by the new rules on the Connected Vehicles. For some time you have been trying to find an agreement between Camfin and Sinochem for a reorganization. A solution that requires an alignment that for the moment has not been possible to find.
