(Alliance News) - Major strategic moves at the top of Pirelli & C. Spa, as reported in Thursday's edition of Il Messaggero.

Camfin, the group's historic shareholder under Marco Tronchetti Provera, is working on a maxi-refinancing to consolidate its position in Pirelli's capital, where it currently holds 26.1 percent.

According to banking sources quoted by Il Messaggero, the operation is being coordinated by Camfin's CEO Giovanni Tronchetti Provera, with the support of a pool of banks led by UniCredit Spa and Intesa Sanpaolo Spa, flanked by Banco BPM Spa, and is being advised by Lazard, Fivers and McDermott.

The plan calls for a three-year refinancing of EUR650 million earmarked for Camfin, Camfin Alternative Assets and Longmarch Italia, companies under the control of the Tronchetti family thanks to special statutory mechanisms.

The resources will be used to optimize the consolidated debt of the three companies, currently around EUR450 million, by reducing its cost and extending its maturity to the end of 2027. They will also enable Camfin to increase its stake in Pirelli to 29.9 percent, a goal announced back in October.

This growth strategy is part of the path begun in January, when Camfin increased its stake in Pirelli from 14 percent to 20.6 percent and then continued to buy shares up to the current 26.1 percent. Growth opportunities were seized at two key moments: in May, with the divestment of Silk Road Fund, and in October, through the exit of Brembo Spa.

In accordance with current contracts, the shares in Pirelli held by Camfin, Camfin Alternative Assets and Longmarch, whose value has increased by 10 percent since the beginning of the year, will be used as collateral for the new financing.

A first step was formalized with a notice confirming the guarantee on the 2.5 percent of Pirelli purchased last October.

By reaching the 29.9 percent ceiling, MTP Spa and Camfin will surpass the previous 28.7 percent obtained through the consultation pact with Brembo, consolidating the leadership of Tronchetti and the Italian group in Pirelli's shareholding structure.

Currently, Pirelli sees Camfin at 26.1 percent, ChemChina at 37.1 percent, and the free float at 36.9 percent. Within Camfin, MTP holds 55.4 percent of the voting rights, followed by Longmarch with 20.3 percent, UniCredit with 15.8 percent, and Intesa Sanpaolo with 8.5 percent.

By Giuseppe Fabio Ciccomascolo, Alliance News senior reporter

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