Pirelli has sold to Bekaert the assets of Izmit, Turkey, relating to steel cord activity, i.e. the business of metal cord for tyres. The operation follows the sale by Pirelli to Bekaert of the steelcord plants in Figline (Italy), Slatina (Romania) and Sumaré (Brazil), already announced on December 18th.
The sale agreement also provides for the transfer to Bekaert of the steelcord activities held by Pirelli in China (Yanzhou), the finalization of which, expected within the first quarter of 2015, remains subject to regulatory approvals by the local authorities.
The closing took place for an enterprise value of approximately 30 million euro, with a substantially equivalent impact on the consolidated net financial position. The economic and financial impact deriving from the sale was not included in the estimates of the Pirelli business plan presented to investors in November 2013.
By mid-morning, the Pirelli stock on the Stock Exchange was hovering around parity, at 12,72 euros.
