China's Silk Road fund has sold its stake in Italian tyremaker Pirelli

China's state-backed Silk Road Fund is selling its stake in Italian tyremaker Pirelli for about €512 million (S $748 million). Rome last year took steps to limit investors' influence over Pirelli on national security grounds.

Under the terms of the deal, Silk Road Fund said on Wednesday it would sell its 9 percent stake for 90 million shares at an indicated price of 5.69 euros each, an 8.08 percent discount to Pirelli's latest closing price.

China's Sinochem remains Pirelli's largest investor, with a stake of about 37 per cent. Bloomberg reported last year that Sinochem was also considering selling its stake.

Italy has been trying to limit China's influence on its strategic assets. Last year, Prime Minister Giorgia Meloni's government used its "golden power" rights to impose restrictions on Sinochem's access to Pirelli tire sensor data, which it deemed strategically important.

Pirelli makes tyres for premium car brands such as Ferrari, McLaren and Bentley.