Pirelli Sells Broadband Business to ADB for 30 million euros

Pirelli & C has sold its broadband business to Advanced Digital Broadcast Holdings (ADB), a company quoted on the Swiss stock exchange for 30 million euros. Analysts received the move as confirmation that the company is wholly dedicated to its tyre business after the separation of its real estate arm earlier this year. The deal was announced on 21 October hours after the company confirmed that Prelios (the new name for Pirelli RE) would make it stock market debut on 25 October.

The 30 million euro price tag consists of 22 million euros in cash and 400,000 ADB shares, corresponding to approximately 7.2 per cent of share capital. With regard to these shares, Pirelli & C. has undertaken a lock-up commitment for the first two months following the closing, as well as a put option for Pirelli & C. and a call option for ADB, which can be exercised within two years. The closing is expected to take place once the transaction has been cleared by the relevant antitrust authority.

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