Fincantieri swerves on Oto Melara and Leonardo’s Wass?
Leonardo, all the news on the sale of Oto Melara and Wass between new proposals on the table (Rheinmetall) and Cdp's questions on the possible capital increase for Fincantieri. The Esg node
The game of the sale of Oto Melara and Wass, the two controlled land and naval armaments put up for sale by Leonardo to raise cash, is livened up.
Il Sole 24 Ore writes, the deadline for the presentation of binding purchase offers to Leonardo expires today. In reality, no offers should arrive today to Rothschild, advisor to the former Finmeccanica, because the government that can use the "golden power" has entered the game and there is a passage in Parliament.
As Defense Minister Lorenzo Guerini (Pd) announced in the Chamber at the end of November, the executive launched an interminesterial table between Mef, Mise and Defense to closely monitor the sale process.
According to the Confindustria newspaper, “the sale will be postponed until after the holidays, probably in February 2022. On Wednesday 22 December the Chamber will hear hearings in the Defense and Productive Activities committees of the CEOs of Leonardo, Alessandro Profumo and of Rheinmetall Italia, Alessandro Ercolani.
In the last few hours, the German group would have informally expressed its interest in Oto Melara to the government, in collaboration with Fincantieri ( rumors of which had already been circulating in recent days ). The possible proposal by Rheinmetall Italia would therefore complement the proposals already expressed by the Franco-German consortium Knds (650 million) and by Fincantieri itself (450 million, which can be increased to 550 million). For the offer by Fincantieri, a group controlled by Cdp Equity with 71.32%, there is talk of the need for a capital increase supported by its main shareholder Cdp.
Regarding the Trieste shipbuilding giant, Il Sole 24 Ore also reports that Cdp has not yet made any formal assessment on a capital increase.
Furthermore, the focus of CDP would instead be more on ESG investments.
And in this regard, yesterday the Piazza Monte Grappa group signed an ESG-linked Term Loan credit line for an amount of 600 million.
However, the ESG criteria adopted by the banks make financing to defense groups more difficult, MF underlined in the interview with Profumo.
All the details.
LEONARDO'S ENTRANCE OF RHEINMETALL IN THE BATCH OF THE SALE OF OTO MELARA AND WASS
According to Il Sole 24 Ore , Rheinmetall has proposed a joint venture for Oto Melara's involvement in the programs of the new tanks (Aifv and Mgcs).
We recall that the Franco-German consortium Knds would also guarantee “full employment and even an increase in places in the Oto plants in La Spezia and Brescia” through two military programs of European scope. That is the MGCS, the Franco-German initiative European tank project and the tracked combat vehicle IFV.
RELATIONSHIP WITH FINCANTIERI
Among the options under consideration would be the involvement of Fincantieri which, through a newco, would proceed to an alliance with Rheinmetall (with which it is already in dialogue for the acquisition of the German shipyards ThyssenKrupp Marine Systems).
A solution therefore appreciated by the naval group led by Giuseppe Bono, but less so by Alessandro Profumo.
NOT APPRECIATED TO LEONARDO
As Il Sole 24 Ore points out , the choice of Rheinmetall would not be appreciated by Leonardo, as a competitor of Hensoldt (of which the former Finmeccanica acquired 25% last April).
In fact, the German defense giant produces combat crawlers but also electronic equipment.
In competition therefore with Leonardo who "wants to reserve the role of electronics supplier for companies to be divested".
FOCUS ON ESG INVESTMENTS
On the outcome of the match there is also the question of Fincantieri's offer, supported or not by CDP.
If last week Reuters and Bloomberg reported that the group led by Bono enjoys the support of its largest shareholder CDP for a capital increase that would allow it to submit an offer for the sale of the former Oto Melara and Wass, today il Sole 24 Ore is not so convinced.
"CDP has not made any assessment of such an operation, which does not seem to fall within the objectives of Scannapieco's industrial plan, which emphasizes ESG investments", underlined Gianni Dragoni of the Confindustria newspaper.
THE LINE SUBSCRIBED BY THE FORMER FINMECCANICA
In the meantime, just yesterday Leonardo signed, with a club of national and international banks, an ESG-linked Term Loan line of credit for an amount equal to 600 million, with a duration of 5 years and maturing at the beginning of 2027, aimed at repayment of a bond maturing in January 2022.
LINKED TO THAT OF LAST OCTOBER
The credit line is linked to specific ESG indicators – included in the ESG-linked Revolving Credit Facility (RCF-ESG) signed on 7 October last.
The RCF was underwritten by 26 banks, resulting in an oversubscription with total commissions of over € 4.4 billion. This is 185% of the requested amount, had reported Profumo to the Sole 24 Ore .
WHAT PERFUME COMPLAINTS
"With the signing of this credit line, 50% of Leonardo's sources of financing are ESG-linked, confirming our commitment to sustainability, an integral part of Leonardo's Industrial Plan and incentive system, and to sustainable finance ”Commented Alessandro Profumo, CEO of Leonardo.
Yet, it is precisely "the ESG criteria adopted by the banks make financing to defense groups more difficult" underlined Milano Finanza. But "Defense is fundamental for safety and in turn safety is a prerequisite for sustainability", highlighted Profumo in an interview with Mf .
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/innovazione/fincantieri-sbanda-su-oto-melara-e-wass-di-leonardo/ on Tue, 21 Dec 2021 14:43:12 +0000.