Shareholders Approve Pirelli RE Split
At an Extraordinary Shareholders' meeting held on July 15, Pirelli C. & SpA shareholders approved the separation of Pirelli Real Estate from the Pirelli Group by way of proportional assignment to ordinary and savings shareholders. These shareholders will be assigned a total of 487,231,561 ordinary Pirelli RE shares that are currently held by Pirelli & C. To this end, the shareholders approved a reduction of the share capital in an amount equal to 178,813,982.89 euros, a sum that corresponds to the value of the Pirelli RE stake being assigned and was determined on the basis of the official Pirelli RE share price as of 14 July 2010.
Approval of the Pirelli RE separation followed a shareholders’ resolution to cancel the par value of ordinary and savings shares and a reverse stock split of the shares in a ratio of one new ordinary share or one new savings share for every 11 shares in the same category held. Following the reverse stock split, the total number of outstanding shares will be reduced to 487,991,493 shares, with no par value, of which 475,740,182 will be ordinary shares and 12,251,311 savings shares. The reverse stock split is expected to take effect on Monday 26 July 2010.
Pirelli says the separation of Pirelli RE, occurring in the context of the operating rationalisation and optimisation plan begun in 2008, aims to focus the company on its core industrial activities in the tyre industry as delineated in the strategies of the 2009-2011 industrial plan.