Pirelli said on Friday its Chinese investor Sinochem had put forward a new top executive as chairman at the Italian tyre maker—a move that could help to ease tensions between its main shareholders.
Ahead of a July 31 shareholder meeting to appoint a new Pirelli board, Sinochem proposed it be chaired by Jiao Jian, who became CEO at the state-owned Chinese group in March. Jiao will replace Sinochem President Li Fanrong at Pirelli.
Nominees for the board are being put forward under amended shareholder accords between Sinochem, which is Pirelli’s largest investor with a 37% stake, and its Italian co-investor Camfin, headed by long-serving Pirelli CEO Marco Tronchetti Provera.
Sinochem’s move to modify governance accords with Camfin prompted the Rome government last month to step in under rules designed to shield assets that are strategic for the country from unwanted foreign influence.
The government’s decisions ensured that Camfin, which owns only 14.1% of Pirelli, appoints the CEO and retains key influence over the group.
While Jiao’s top role at Sinochem shows the Chinese group remains committed to the investment in Pirelli, the new nominee suggests a willingness to open a new chapter in the relations, a person close to the matter said.
Sinochem picks eight members of the 15-strong board and Camfin four. Nominees include new CEO designate Andrea Casaluci and Tronchetti Provera, who will shift to the executive vice-chairman job.
Tronchetti Provera has led Pirelli since 1992.
Reuters