Italy's Leonardo to offer 6.3% stake in US subsidiary in share sale

Leonardo DRS

15/11/2023 22:40

Nov 15 (Reuters) - Italy's state-controlled defence and
aerospace group Leonardo  LDOF.MI  on Wednesday said it would
sell a 6.3% minority stake in its U.S. subsidiary Leonardo DRS
 DRS.O  on the market. 
    The 16.5 million shares in Leonardo DRS making up the stake
are worth about $344.2 million, according to Reuters
calculations based on their closing price on Wednesday. 
    Proceeds from the sale will be used to increase financial
flexibility to finance possible investments and acquisitions,
Leonard said in its statement announcing the sale. 
    Index provider MSCI  MSCI.N  on Tuesday added Milan-listed
Leonardo to its widely-followed MSCI ACWI stock index. 
    Last week, Leonardo posted rising core earnings, revenues
and new orders and confirmed its full-year guidance.
Profitability in the nine months to Sept. 30 was mainly
supported by European electronics, aircraft and helicopters.
    Morgan Stanley, BofA Securities and J.P. Morgan are acting
as joint book-running managers for the proposed share offering. 
   

 (Reporting by Urvi Dugar in Bengaluru; Editing by Tom Hogue)
 ((UrviManoj.Dugar@thomsonreuters.com;))