(Alliance News) - Fincantieri Spa announced Tuesday that its board of directors has resolved to exercise the authority granted by the extraordinary shareholders' meeting regarding a capital increase of up to EUR500.0 million.

The capital increase aims to support growth by external lines with financial resources functional to the completion of Fincantieri's acquisition of Leonardo Spa's "Underwater Armaments Systems" business line, announced to the market on May 9.

The maximum consideration for the acquisition is the sum of EUR300 million as a fixed component relating to enterprise value, subject to usual price adjustment mechanisms, plus a maximum of EUR115 million as a variable component upon the occurrence of certain growth assumptions linked to the performance of the UAS business line in 2024, for a total total enterprise value of a maximum of EUR415 million.

A first tranche of the aucap will be realized through the issuance of new ordinary shares for a maximum of EUR400.0 million and a second tranche of EUR100.0 million through the issuance of ordinary shares to be subscribed for within a maximum of 36 months after the first tranche is fully released.

The shareholder CDP Equity Spa has made an irrevocable commitment to subscribe the new shares of the first tranche for a maximum of EUR287 million, corresponding to its share of the first tranche.

In addition, the company's note says, BNP Paribas, Intesa Sanpaolo, Jefferies, JP Morgan and Mediobanca will sign in the run-up to the launch of the rights offering, as soon as the board of directors has set the final terms of the capital increase, a guarantee agreement for the subscription and release of any new shares not subscribed at the outcome of the auction of unopted rights, up to the maximum amount of the first tranche of the capital increase, net of the countervalue of the subscription commitment made by CDPE.

During Tuesday's meeting, the board of directors also approved the 1:10 reverse stock split of 1.70 billion Fincantieri ordinary shares with no par value expressed in 170.0 million newly issued Fincantieri ordinary shares with the same characteristics as the issued ordinary shares, through the withdrawal and cancellation of the issued and existing Fincantieri ordinary shares and the allotment, for every 10 ordinary shares withdrawn and cancelled, of one newly issued Fincantieri ordinary share.

Fincantieri closed Tuesday 1.7 percent in the red at EUR0.57 per share.

By Chiara Bruschi, Alliance News reporter

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