Pirelli says 99.3% of 500 million euro bond converted, diluting Sinochem and Camfin stakes

MILAN, ‌Dec 18 (Reuters) - Tyremaker Pirelli said on Thursday nearly all ‍holders ‌of its 500 million euro ($587 million) bond expiring this ⁠month have chosen to ‌convert it into new shares in the company, diluting the stakes held by the group's existing investors.

Pirelli said in a statement ⁠that holders have opted to convert bonds into shares for 99.3% of ​the bond's total value, at the ‌price of 5.8493 euros per ⁠share that was announced in June.

To meet the conversion, Pirelli will issue a total of around 84.88 ​million new shares, causing a dilution of the holdings of its shareholders, it said. 

The stake of Chinese state-owned Sinochem, Pirelli's largest investor, will be reduced to around ​34.1% ‍from 37% now, while ​that of Camfin - the vehicle of Italian businessman Marco Tronchetti Provera - will dip to 25.3% from 27.4%.

Sinochem and Camfin, Pirelli's two largest shareholders, have crossed swords repeatedly in recent years, with Camfin complaining that Sinochem's stake is ⁠hindering the group's U.S. expansion.

Camfin has been authorised by its board to increase its ​stake in Pirelli up to 29.9% by October next year.

Pirelli said on Thursday the bond's conversion would have a positive impact on its debt, ‌improving its 2025 net financial position by over 496 million euros.

($1 = 0.8522 euros)

(Reporting by Giulio PiovaccariEditing by Keith Weir)