Italy’s KME signs deal with US SEDA to list Cunova unit on NYSE

By Thomson Reuters Feb 20, 2024 | 6:41 AM

MILAN (Reuters) – Italian copper and copper alloy producer KME said on Tuesday it had signed an equity transaction deal aimed at listing its Cunova unit on the New York Stock Exchange (NYSE).

KME, which has a 45% stake in Cunova, signed the business combination agreement with German private equity fund Paragon, which owns the remaining 55% of the company, as well as NYSE-listed special purpose acquisition company SEDA.

Under the deal, KME will sell its aerospace business to Cunova and hold around 60% of the combined listed company, while Paragon will fully exit its investment.

The pro-forma enterprise value of the combined company is estimated to be around $736 million, including a net debt of $289 million, and an equity value of about $447 million.

The closing of the transaction is expected in the second quarter of this year.

(Reporting by Cristina Carlevaro, editing Giulia Segreti)