Leonardo-Finmeccanica grows in the Space Sector by increasing its shareholding in Avio

(To Leonardo-Finmeccanica)
20/10/16

Leonardo-Finmeccanica announces the approval by the Board of Directors of the operation to increase its stake in Avio from the current ca. 14% to about 28%. The current majority shareholder, Cinven, will leave the Avio shareholder structure. This transaction will also be implemented through a corporate integration process between Space2 - a special purpose acquisition company currently listed on the MIV / SIV segment of Borsa Italiana - and Avio, to be carried out through the merger of Avio into Space2 (the "Business Combination") and the consequent listing of Avio. Avio will receive an additional cash allocation of approx. € 66m to support development plans.

Mauro Moretti, Chief Executive Officer and General Manager of Leonardo-Finmeccanica, commented "the transaction represents a further step in the implementation of the Business Plan, aimed at the growth and strengthening of the core business of aerospace, defense and security; through the development of the Avio business and acquiring greater weight in the shareholder base, Leonardo-Finmeccanica will be able to strengthen its position in the space business, consolidating its role in the launcher segment also for small satellites ".

Avio is a company characterized by cutting-edge technologies, highly qualified skills, systemic capabilities in propulsion for space launchers and missiles and complete launchers (Vega, new generation launcher).

Possible industrial collaborations with the Space Alliance, composed of the JVs Telespazio and Thales Alenia Space, may also be developed.

The total disbursement envisaged for Leonardo-Finmeccanica is approximately € 43 mln. The realization of the Business Combination and the subsequent listing of Avio are expected within the first quarter of the 2017 and are subject to standard conditions for transactions of this type.

(photo: Avio)