Avio in the spotlight as Advent considers a move to acquire further shares beyond the 7 per cent mark

Il Sole 24 Ore Radiocor – The possible move by Advent funds to acquire further shares in Avio is not boosting the share price of the space launch vehicle manufacturer, which is nevertheless regaining ground following the falls seen in previous trading sessions. Two hours before the markets opened on 21 August, the share price was up by around half a percentage point (€31.5) following a fall of more than 2 per cent the previous day. The week will nevertheless end in the red, following the gains of the previous week.

According to a report by Radiocor the day before, the US fund is considering the purchase of further Avio shares in addition to the stake of almost 7 per cent it will hold following the reserved share issue announced in July. This possibility is explicitly provided for in the investment agreements signed between Advent and Avio, with the fund reportedly evaluating ‘potential opportunities’ to increase its stake before the transaction is finalised, which is expected by the end of 2026 and is subject, amongst other conditions, on authorisation under the Golden Power legislation. “A positive sign that demonstrates Advent’s confidence in the company’s long-term prospects”, say analysts at Banca Akros, noting that Advent is one of the leading private equity firms, with over $94 billion in assets and specialising in the defence sector, in which it has invested more than $15 billion since 2020. Advent is also reported to have expressed an interest in appointing its own representative to the board of directors should a seat become available. This possibility could materialise as early as September, following the resignation of board member Elena Pisonero.

According to Intermonte analysts, although these are merely rumours, the reports appear to be consistent with the “significant strategic value that Advent attaches to its investment in Avio”. The intention to further increase its stake beyond the level initially envisaged “would represent a further sign of confidence in the group’s growth prospects and its expansion strategy, particularly in the United States”. Furthermore, according to Intermonte, a possible strengthening of Advent’s presence in both the share capital and governance ‘could help to accelerate the implementation of industrial development plans, drawing on the fund’s experience in the aerospace and defence sectors, as well as on the network of industrial and institutional relationships already highlighted by the company at the time of the transaction’s announcement’.