Pirelli SpA’s sale of its broadband business is a done deal.
On Nov. 29, the Italian company reported the sale of Pirelli Broadband Solutions SpA to Advanced Digital Broadcast Group has been finalized and the transaction is now completed and closed.
Advanced Digital Broadcast paid approximately 25.1 million euros in cash and 400,000 listed shares, equal to approximately 7.2% of its capital, for the broadband business. With regard to these shares, Pirelli has undertaken a lock-up commitment for the first two months following the closing, as well as a put option for Pirelli and a call option for ADB, which can be exercised within two years.
The sale of Pirelli Broadband Solutions is part of Pirelli’s stated strategy of focusing on its core tire business. Pirelli says the business’s sale to a leading industrial company is intended to ensure the continued growth and development of Pirelli Broadband Solutions within the broadband access systems market. (Tyres & Accessories)