Avio: Advent will consider purchasing further shares in addition to the initial 7 per cent

The agreements include the possibility of buying on the market before the share price rises

(Il Sole 24 Ore Radiocor) - Advent funds are considering purchasing further Avio shares in addition to the stake of almost 7 per cent they will acquire through the planned reserved share issue. This option, which may be exercised before the capital increase is finalised, is set out in the investment agreements signed in July between the private equity fund’s vehicle, Vantage Hyp, and Avio itself, and is included in the shareholders’ agreements. As announced to the market, Advent, in order to support the long-term growth of the group specialising in engines for missiles and space rockets – and in particular its programmes in the United States – intends to acquire, through the capital increase, approximately 3.2 million shares for €109 million (€33.4 per share), thereby holding a 6.54 per cent stake and becoming the second-largest shareholder after Leonardo. Furthermore, according to documents consulted by Radiocor, Advent will assess “potential opportunities to acquire further Avio shares on the secondary market”, thereby demonstrating its intention to round out its stake.

Any shares purchased by Advent prior to the capital increase, which is scheduled to take place by 31 December this year, will be subject to the 12-month lock-up agreement entered into with Avio, which prevents the funds from disposing of the shares. Advent’s entry is subject to approval by the Italian government under the Golden Power legislation. In the investment agreements, the US funds have also expressed an interest in appointing a representative to the board of directors in the event of the resignation of a sitting director – a situation that will arise as early as the beginning of September, when Elena Pisonero’s resignation for personal reasons takes effect.

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