MILAN, Italy—Pirelli & C. S.p.A. has retained Deutsche Bank and Goldman Sachs International for the role of financial advisers to support the Italy-based tire maker's board of directors in China National Chemical Corp.'s proposed plan to acquire a majority stake in Pirelli from Camfin S.p.A.
ChemChina agreed to purchase Camfin's 26.2 percent stake of Pirelli in March through its wholly owned subsidiary China National Tire & Rubber Co. At the time, the purchase price was 15 Euros per share converted to $16.25 per share, valuing Pirelli at about $7.7 billion. The transaction is projected to be complete in summer 2015.
The Chinese tire maker also plans to launch a mandatory tender offer for a majority share of the Italy-based tire maker and potentially take it private to facilitate restructuring once the acquisition of Camfin's stake is complete.
Since the March announcement, ChemChina has reached an agreement to acquire Edizione s.r.l.'s stake in Pirelli for the same price of $16.25 per share, which would give the Chinese tire maker a share of more than 30 percent in Pirelli if approved.