Pirelli accelerate onIpo to return to the Stock Exchange "as early as the fourth quarter of 2017". This was announced in a note in a company, explaining that the decision is linked to the "positive results achieved" thanks to the focus of the business on consumer tires and the "current favorable market dynamics".
With the quotation, ChemChina confirmed its willingness to go down under the 50% of the capital of Pirelli (from the current 65%).
Pirelli's listing on the Stock Exchange, continues the note, "is envisaged on the Milan stock exchange or in any case on one of the major international stock exchanges with a free float that will be defined before the start of the operation".
In detail, the Board of Directors of Pirelli and that of its sole shareholder, Marco Polo International Italy Spa, approved an operation proposed by a pool of banks (Banca IMI of the Intesa Sanpaolo group, JP Morgan and Morgan Stanley) which makes it possible to speed up the IPO process thanks to the improvement of Pirelli's financial profile, with a reduction in the net debt ratio /Ebitda at levels below 3.
La debt reduction functional to the listing is structured in three phases. First and foremost, the banks are expected to grant Marco Polo a loan of 1,25 billion euros which will be fully repaid with the proceeds from the IPO.
Secondly, Pirelli will deliver a capital increase of 1,2 billion euros which will be entirely subscribed by the shareholder Marco Polo and will be destined to repay part of the current Pirelli debt for the same amount.
Finally, the refinancing of Pirelli bank lines for 4,2 billion euros, at better conditions than the current ones. The refinancing, which saw Intesa Sanpaolo as the pivot of the operation, will allow Pirelli to reduce the cost and lengthen the average life of its debt. As part of the preparatory activities for the company's listing on the Stock Exchange, the Board of Directors also appointed Banca Imi, JP Morgan and Morgan Stanley as Global Coordinators of the transaction.
