Czech Investors Interested in Sinochem's Stake in Italian Tyremaker Pirelli
Overview of the Potential Investment Deal
ROME, July 3 (Reuters) - Czech business leaders Michal Strnad and Pavel Tykac are interested in buying part of the stake held by China's Sinochem in Italian tyremaker Pirelli, Italian daily Corriere della Sera reported on Friday.
Details of the Proposed Stake Acquisition
The two investors have expressed interest in buying between 10% and 20% of Pirelli's share capital from Sinochem, the newspaper reported, citing sources.
Current Shareholding Structure
• Beijing-controlled Sinochem is Pirelli's largest shareholder with a 34.1% stake. Italian investor Camfin, the investment vehicle of longstanding Pirelli executive Marco Tronchetti Provera, owns just under 27%.
Status of Negotiations
• Talks are at an early stage and differences over valuation remain a key hurdle between the two entrepreneurs and the Chinese group, the report added.
Profiles of Interested Czech Investors
Pavel Tykac
• Czech billionaire Tykac owns Sev.en GI, which holds assets in the United States, Europe and Australia, mainly in mining, power production, coal mining and steel production.
Michal Strnad
• Strnad is an investor in ammunition and arms producer CSG.
Strategic and Regulatory Context
Italian Government's "Golden Powers"
• Rome earlier this year imposed curbs on Sinochem, using so-called "golden powers" aimed at protecting companies considered of strategic importance amid a governance dispute at the company.
Implications for Pirelli's Expansion
• Pirelli and Camfin say Sinochem's ownership position complicates Pirelli's expansion plans in the United States, as Washington tightens restrictions on Chinese technology in the automotive sector.
Responses from Stakeholders
Pirelli's Position
• Pirelli declined to comment.
Other Stakeholders
• It was not possible to obtain an immediate comment from Sinochem, Se.ven GI or CSG.
Reporting Credits
(Reporting by Mirko Miorelli. Additional reporting by Karol Badohal. Editing by Giulia Segreti and Mark Potter)
