Pirelli confirms tyre business focus as stake in real estate firm rises
Pirelli’s share in Italian real estate company Prelios has risen from 13 per cent to approximately 29 per cent following the conversion of bonds worth €148.4 million plus accrued interest. While this 29 per cent shareholding includes a portion (around 22 per cent) that is constrained by lock-up obligations until 2016, Pirelli has released a statement confirming its strategic focus upon its core tyre business. The company is “therefore not a long-term investor in the ‘real estate’ industry” and will “seize any possible opportunity” to divest its Prelios shares.
Immediately prior to the bond conversion, Prelios – which was known as Pirelli Real Estate until 2010 – announced a 2013 loss of €333 million.