(Alliance News) - As part of the Italian Navy's Offshore Patrol Vessel program, Orizzonte Sistemi Navali OSN, the joint venture owned by Fincantieri Spa and Leonardo Spa, with stakes of 51 percent and 49 percent respectively, has received notification from the Navy that it has exercised its option to build the fourth next-generation patrol vessel and related logistics support.

The companies announced Monday that the total value of the deal is about EUR236 million.

In the days to follow, OSN will finalize the subcontracts by notifying Fincantieri and Leonardo of the exercise of the options, which will be worth about EUR163 million and about EUR70 million, respectively.

The one with Fincantieri constitutes a major related party transaction.

For Leonardo, the planned subcontract, represents a related party transaction of lesser significance due to the value of the contract and the materiality ratios applicable to the case.

On Friday, Leonardo closed 3.7 percent in the red at EUR20.80 per share while Fincantieri ended down 2.7 percent at EUR4.95 per share.

By Chiara Bruschi, Alliance News reporter

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