Italian shipbuilder Fincantieri is to buy Leonardo’s submarine business, known as Whitehead Alenia Sistemi Subacquei (WASS), two sources close to the situation said.
event
May 30 – European Funds Marathon. Partners: BCR, BRD, CEC
June 4th – Event Profit.ro: The Romanian real estate market under the specter of the Western crisis. IV edition. Partners: 123Credit
June 6 – The Energy Marathon
June 13 – Profit Event: Capital Market.forum – Challenges for developing markets and increasing liquidity, 4th Edition. Partners BCR, CEC Bank, Infinity Capital Investments, Sphera, Teraplast
Fincantieri will finance the acquisition, worth 250-300 million euros ($268-322 million) through a recapitalization of up to 500 million euros, one of the sources told Reuters.
The deal fits with Fincantieri’s broader strategy to grow through acquisitions, focusing more on defense – now accounting for around 25% of its revenues – as well as strengthening its position in the submarine business, news.ro reports.
Additional funds beyond the deal value will be used by the shipbuilder to further develop its defense business, a fast-growing sector the state-controlled company is banking on, the source added.
State-owned bank Cassa Depositi e Prestiti (CDP) plans to subscribe to the capital increase to finance the deal, Italian financial daily Il Sole 24 Hour reported on Thursday.
Shares in the shipbuilder – which has a market capitalization of 1.15 billion euros – fell about 9% as analysts worried about the size of the proposed recapitalization.
Negotiations between the two state-controlled groups have slowed because of “temporary opposition” from internal managers, Leonardo’s chief executive, Roberto Cingolani, told reporters in mid-April.
