Pirelli sells some assets to the Belgian Bekaert. To be precise, according to what the two companies announced yesterday in a press release, the Italian group sells its steelcord business to Bekaert (the steel cord that makes up some types of tyres) in Italy (Figline), Romania (Slatina) and Brazil (Sumaré).
In line with what was already announced last February, the sale agreement provides for the transfer to Bekaert also of the steelcord activities held by Pirelli in Turkey (Izmit) and in China (Yanzhou), the finalization of which remains subject to regulatory approvals by the local authorities. As already communicated to the market last November, these authorizations are expected to arrive within the first quarter of 2015.
Yesterday's closing took place for an enterprise value of approximately 150 million euros, consistent – pro rata terms – with the total value of approximately 255 million euros disclosed at the time of signing the agreement. The transaction will have an approximately equivalent impact on the consolidated net financial position. As already communicated at the time, 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.
Today the Pirelli share travels at 11,30 around parity on the Stock Exchange, at 10,94 euros.
