Finmeccanica, 260 million euro of proceeds from the GE-Avio transaction, earmarked for debt reduction

Roma  21 December 2012 00:00

Finmeccanica announces that the company Avio S.p.A., 100% controlled by BCV Investments S.C.A. (“BCV”), which is 14.3% owned by Finmeccanica, has sold to GE the activities related to its aircraft engine division. The transaction is subject to regulatory and governmental approvals.

At transaction closing, Finmeccanica will receive approximately 260 million euro, which will be used to reduce Group indebtedness.

The selling price is more than two times the investment made by Finmeccanica in Avio S.p.A. in 2006.

Finmeccanica will maintain its 14.3% stake in BCV, the controlling entity of Avio S.p.A., together with the majority shareholder Cinven. Avio S.p.A., upon completion of the transaction, will contain only the activities in the space sector not acquired by GE. In 2011, these activities generated revenues of approximately 300 million euro, primarily in the field of space launchers such as Ariane 5 and Vega.

"The transaction has a significant financial and industrial relevance," highlighted Giuseppe Orsi, Chairman and CEO of Finmeccanica. "On one hand, it represents an important first step in the announced divestiture plan; on the other, it allows Finmeccanica to evaluate its presence in the space activities of Avio S.p.A. and to make, over time, its determinations on the matter."