Leonardo Won’t Subscribe to Hensoldt Share Increase

By David Sachs

Leonardo will not participate in a capital increase being considered by German military supplier Hensoldt.
The Italian defense company said late Tuesday that it agrees with the rationale for the share increase, which is attached to Hensoldt’s acquisition of ESG Elektroniksystem und Logistik, but will not subscribe.

Hensoldt said Tuesday that it would finance the transaction with a capital increase of up to 10% of its current shares. Leonardo owns 25.1% of Hensoldt.
Write to David Sachs at david.sachs@wsj.com