Investing.com -- Milan-listed shares in Pirelli (BIT:PIRC) sank on Thursday after China's state-backed Silk Road Fund reportedly sold off its 9% stake in the Italian premium tiremaker and Executive Vice Chairman Marco Tronchetti Provera raised his holding.
Citing a bookrunner, Reuters reported that Silk Road Fund had completed a sale of its 90.2 million shares in Pirelli at a price of 5.76 euros each, giving the stake a value of roughly 520 million euros. The selling price was above the guidance of 5.69 euros per share announced when the share sale was first unveiled on Wednesday, Reuters added.
The move comes as Italy's government, led by Prime Minister Giorgia Meloni, has been attempting to limit China's influence over companies that Rome has identified as strategically important. Italy previously utilized its so-called "golden power" rights to restrict the access Chinese conglomerate Sinochem has to sensors on Pirelli tires.
Sinochem remains Pirelli's biggest investor, holding a 37% stake in the firm.
Meanwhile, Pirelli's second-largest shareholder, Camfin, has expanded its interest to 22.8%. Camfin is the investment vehicle for Tronchetti Provera.