Pirelli & CSpA. recently received a confirmation of its investment grade rating by S&P Global Ratings, maintaining BBB- and improving the outlook from “stable” to “positive”. This positive review reflects the agency's confidence in Pirelli's ability to successfully execute its industrial plan for the period 2024-2025, as well as in its solid market positioning and financial management.
Solid location
According to S&P Global Ratings, Pirelli is in one robust position to implement its strategic plan thanks to its solid cost discipline and its strong positioning in the High Value tire segment. This strategic positioning allows the company to generate stable operating cash flow, thus contributing to deleveraging in the medium term.
The Chinese of Silk Road out of the shareholder structure
At the end of May, the Chinese Silk Road fund has started an accelerated placement procedure for sell 9% of Pirelli shares, equal to 90,2 million shares. The sale price was set between 5,69 euros and 6,19 euros per share, representing an 8% discount compared to the market price of the stock on Piazza Affari. If sold entirely, Silk Road could gross between 523 and 560 million euros. This movement marks theexit of the Chinese from Pirelli, a direct consequence of theapplication of the Golden Power by the Italian government, which aims to protect the country's strategic assets. Silk Road was interested in intervening directly in the management of Pirelli, but the Golden Power imposed restrictions that pushed the Chinese fund to reduce its stake.
