Italy’s space propulsion company Avio might list on the Italian Stock Exchange through a business combination with the Spac (Special purpose acquisition company) Space 2, MF Milano Finanza writes today.
Both Avio’s shareholders (Cinven private equity firm with an 81% stake and Italy’s aerospace group Leonardo with 14%, with the rest owned by the managers) are working at the deal, with Space2 that is studying other dossiers too as it is structured in a way to be sepatated into two different veichle, if necessary.
Last June Avio was reported planning to go public by October this year (see here a previous post by BeBeez), with Banca Imi and Citi as global coodinators of the ipo, Chiomenti, White & Case e Clifford Chance as legal advisors and Rothschild as financial advisor. However the actual turbulence on the international financial markets has mad Avio’s advisors to stop the plan and look for other solutions.
Avio spa reached 279.2 million euros in revenues in 2015, with 35.5 millions in adjusted ebitda and a net financial debt of 27.6 millions. This means an enterprise value of 280-350 millions with a 7-9x ebitda multiple.
Space2 had raised 300 million euros from investors in July 2015 and since then has been listed on the Italian Stock Exchange (see here a previous post by BeBeez). Space2 is the second Spac  promoted (through Space holding) by the same management team who had promoted Space in 2013, the Spac that last June announced the business combination with Fila, a leading manufacturer of pencils and writing products. Space2 promoters are eSergio Erede, Gianni Mion, Roberto Italia, Carlo Pagliani and Edoardo Subert, each owning a 18.61% stake; con il 18,61% ciascuno; Alfredo Ambrosio with a 4.95%; and Elisabetta De Bernardi with a 2%.
MF Milano Finanza refers that in case of a business combination with Space2, Leonardo is said to reinvest and rise its stake in Avio’s capital while Space2 might end with a 40-45% stake and some cash left to be invested in another business combination through a newco.
Roberto Italia, who is the Cinven’s partner who has been following Avio’s deal in the last few years, is out of the game in this deal, as he would be in conflict of interests, being also one of Spac2’s promoters. Actually Mr. Italia is not partecipating at the talks between Space2 and Avio’s shareholders.
