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MILAN, June 30 (Reuters) - Pirelli investor Camfin said on Wednesday it had increased its stake in the Italian tyre maker to 14.1% as a result of its previous deal with Longmarch, the investment vehicle of China’s Niu family.
Under the deal, Longmarch will take a 7.68% stake in Pirelli through an existing “repurchase agreement” to then hand a 4% holding to Camfin while retaining the remaining 3.68%, the Italian investment vehicle said in a statement.
Camfin said a commitment by Longmarch to consult ahead of Pirelli shareholder meetings and heed indications given by Camfin remained in place, signalling the transaction would likely strengthen Camfin’s grip on Pirelli.
As part of the accord, Longmarch will also get a 34.9% stake in Camfin through a reserved capital increase. Camfin said the Pirelli shares it owns had been valued at 6.5 euros ($7.70) each in order to determine the Longmarch’s stake.
Camfin said it also held a 4.6% potential stake in Pirelli through “call spread” financial instruments.
Camfin said its shareholders were also considering extending a lock-up deal to the end of June 2026 from a previous deadline of end-June 2023.
(Euro = $1.18)
Reporting by Francesca Landini; editing by Valentina Za and Richard Chang