Italy's Fincantieri is solid, capital raise for UAS acquisition, CEO tells daily

ROME (Reuters) - Italy's Fincantieri does not need capital to support the company, which is "ever more solid", its CEO said in an interview published on Thursday, referring to the issuance approved to support a recent acquisition.

The shipbuilder said last month it had bought Leonardo's Underwater Armament Systems (UAS) in a deal giving the submarine business an enterprise value of 415 million euros ($451.64 million) and that the purchase would be financed through a capital raise of up to 500 million euros in two parts.

Just before the deal was announced on May 9, Fincantieri's shares had tumbled by up 9% on concerns the shipbuilder might be facing a liquidity issue as the recapitalisation was worth more than the deal.

Asked about risks of financial fragility for the state-controlled group, Chief Executive Pierroberto Folgiero told daily Il Sole 24 Ore: "Investors saw the financial potential of the (UAS) deal. We do not need props, the company is ever more solid".

Folgiero said the company was working to carry out the capital increase before the summer, with the board due to approve the operation at its next meeting.

($1 = 0.9189 euros)

(Reporting by Giulia Segreti; Editing by Alvise Armellini and Mrigank Dhaniwala)