MILAN, Italy—Pirelli & C. S.p.A.´s directors have OK´d the a plan to sell a 39-percent stake in Pirelli Tyre S.p.A. to a consortium of international banks, three weeks after the Italian company withdrew an initial public offering for the tire division.
The deal, which will generate nearly $950 million in capital for Pirelli, is a precursor to the banks´ reissuing the stock at a later date as an initial public offering, according to Pirelli. Pirelli pulled back its IPO after it determined global market conditions didn´t allow the company to realize the tire operation´s real value.
The directors told Marco Tronchetti Provera, Pirelli chairman and CEO, to complete the details of the placement with the banks-Banca Intesa, Banca Leonardo Group, Capitalia, One Equity Partners-JP Morgan, Lehman Brothers and Mediobanca.
The value of the shares places the equity value of Pirelli Tyre at $2.4 billion.
Pirelli Tyre reported sales last year of $4.5 billion, with 24,000 employees at 24 factories in 12 countries and commercial activities in more than 160 countries, Pirelli said.