STEZZANO, Italy -- Shareholders in Brembo approved on Thursday a loyalty share program that allows the family that owns the Italian premium brake maker to retain control as the company looks to expand through acquisitions.
Under the new program, investors will have two voting rights for each share held for at least 24 straight months.
"We consider this a useful instrument for an important acquisition," Executive Deputy Chairman Matteo Tiraboschi told the group's annual general meeting, adding however that no deal was on the table at present.
Tiraboschi said Brembo needed to enlarge the range of products it offers to clients and that could happen only through acquisitions.
"At the same time, the top shareholder wants to confirm its commitment to the company," he said.
Chairman Alberto Bombassei told the AGM that a stable shareholder base was key for Brembo's long-term development especially in light of the high uncertainties and instability weighing on the automotive industry.
Earlier this month, Bombassei said his family, which owns 53.2 percent of Brembo, was ready to reduce its holding below 50 percent in the event of any deal, but without giving up strategic and managerial control of the new entity.
The loyalty share scheme will start in 24 months after the new rule is formally registered.