Avio will be listed on the Stock Exchange with a floating above 65% following the merger with Space 2. A note from Space2, an Italian SPA listed on the Miv market/Siv segment of Borsa Italiana details the merger operation between the companies and which will see Leonardo-Finmeccanica invest in the operation together with Space2 and to the management of Avio, rising from 14% to 28% of the company after the business combination. Avio will receive an additional cash allocation equal to approx 66 million euro intended to support development plans. The total outlay foreseen for Leonardo-Finmeccanica is approximately 43 million. The implementation of the Business Combination and the subsequent listing of Avio are expected within the first quarter of 2017 and are subject to standard conditions for transactions of this type.
Going into the details of the operation approved by the Boards of Leonardo-Finmeccanica, Avio and Space2, it will mainly be implemented through the acquisition by Space2 and Leonardo of 85,68% of the share capital of Avio and the merger of Avio in Space2 while Cinven Limited will exit entirely from the capital of Avio. The operation, specifies the note, will employ approximately 154 million euros of Space2's assets, equal to half of its current capital endowment. The remaining portion of the equity will flow, net of the disbursement that Space2 should incur for the exercise of the right of withdrawal, into the newly established Space3 as a result of the proportional partial demerger of Space2 in favor of Space3. With the merger, Avio will benefit from new financial resources up to a maximum of 80 million.
“The operation represents a further step in the implementation of the Industrial Plan, aimed at the growth and strengthening of the core business of aerospace, defense and security; through the development of the Avio business and by acquiring greater shareholding weight, Leonardo-Finmeccanica will be able to strengthen its position in the space business, consolidating its role in the launcher segment, even for small satellites”. Leonardo's managing director Mauro Moretti thus commented on the operation. The note recalls that Avio is a company characterized by highly qualified technologies and skills, with system engineering capabilities in propulsion for space launchers and missiles and in complete launchers (Vega, new generation launcher).
“The Business Combination with Avio is a source of absolute satisfaction for Space2” commented Gianni Mion, president of Space2. "After the great success of Space with Fila, we are proud to bring to our investors another true Italian jewel, a leader in a sector where our technology is recognized worldwide for its excellence".
Possible industrial collaborations could also be developed with the Space Alliance, made up of the JV Telespazio and Thales Alenia Space. For the purposes of the transaction, Leonardo-Finmeccanica was assisted by Bnp Paribas and Mediobanca as financial advisors and by the Gianni, Origoni, Grippo, Cappelli & Partners studio as legal advisor.
