Pirelli said on Thursday it expected Italy would conclude its review of governance agreements involving the holding in the tyre maker by China’s Sinochem after early June, pushing it to further postpone the appointment of its new board.
Earlier this year, Pirelli said Sinochem, its largest shareholder, with a 37% stake, notified Italy’s government of plans to renew and update an existing shareholder pact with fellow investor Camfin, the financial holding of Pirelli’s CEO, Marco Tronchetti Provera.
Italy’s right-wing administration has to approve the scheme under “Golden Power” rules aimed at protecting assets deemed of strategic importance for the country.
Rome’s use of golden powers in most cases results in deals being approved with binding conditions to preserve the national interest.
Pirelli, which also reported first-quarter results on Thursday, said it was informed that it was “foreseeable” the final provision of the Golden Power procedure might be issued on a date after the expiry of the term for the presentation of the lists for the next appointment of board members.
Current board term runs out on June 4
The board appointments were initially scheduled for the shareholders meeting on June 29, while the legal term to present lists, which by law expires 25 days beforehand, fell on June 4.
Pirelli said it would approve its 2022 full-year results at the June 29 shareholders meeting, but said it would then propose a new meeting, to be called presumably by July 31, to approve other resolutions, including a planned board renewal.
For the January-March period, Pirelli reported 8.6% growth in operating profit. Its adjusted earnings before interest and tax (EBIT) came in at 248.1 million euros ($273.1 million), slightly exceeding a company-provided analyst consensus of 236 million euros.
The result was supported by stronger pricing capacity and product mix, as well as increased efficiency, which helped offset external headwinds such as raw materials inflation or exchange rates.