BERLIN (Reuters) - Hensoldt shareholder Leonardo will not participate in the company's planned capital increase for the time being, the chief executive of the German military sensor maker told analysts on Wednesday.
Leonardo fully supports Hensoldt's plans to buy German military service firm ESG for at least 675 million euros ($727.31 million), Thomas Mueller said. The capital increase would partially finance the acquisition.
"Ask them yourself, why they do not invest in us," Mueller said.
The Italian state-controlled defence and aerospace group is a key shareholder of Hensoldt, together with the German state. They each hold 25.1% of shares in the company.
With a capital increase of up to 10%, Leonardo's share would be diluted.
The German government has indicated that it would subscribe to a quarter of the new shares through the state bank KfW in order to maintain its blocking minority.
The capital increase should be carried out "sooner rather than later", Hensoldt's chief financial officer Christian Ladurner said.
The closing of the ESG deal is expected in the second quarter of 2024.
($1 = 0.9281 euros)