April 28 (IFR) - Tyremaker Pirelli is bringing forward a plan to list its shares to the end of this year after reaching an agreement with its controlling shareholder.
The shares will probably be listed in Milan, although the company said it is considering other venues.
China National Chemical Corp, which owns 65% of holding company Marco Polo International, agreed to its shareholding being diluted below 50%.
Camfin, an Italian holding company whose investors include Pirelli boss Marco Tronchetti Provera, UniCredit, and Intesa Sanpaolo, owns 22.4% of Marco Polo, while an investment fund linked to Rosneft owns the remainder.
Pirelli was to list in the first half of 2018 but said it was bringing forward the listing because of an improvement in its financial profile and to take advantage of favourable market conditions.
The company said its net debt/Ebitda ratio is now below three times.
As part of the public offering, Marco Polo will receive €1.25bn from Pirelli’s primary banks to be repaid with the IPO proceeds.
Pirelli will raise €1.2bn in a capital increase underwritten by Marco Polo to repay the same amount of debt, and refinance €4.2bn in credit lines to reduce costs and extend the average maturity.
Banca IMI, JP Morgan and Morgan Stanley are the primary banks and global coordinators for the listing. (This story will appear in the April 29 issue of IFR Magazine)