13th Sep 2021 09:56
(Alliance News) - Rolls-Royce Holdings PLC and Babcock International Group PLC on Monday said they have agreed to sell their stakes in AirTanker Holdings Ltd to London-based private equity firm Equitix Investment Management Ltd.
AirTanker Holdings is a joint venture among Rolls-Royce, Babcock, Airbus SE and Thales SA that owns 14 Airbus A330 Voyager aircraft.
Another company, AirTanker Services Ltd, uses the aircraft to provide air-to-air refuelling and other aviation services to the UK Ministry of Defence. Both Rolls-Royce and Babcock will keep their stakes in AirTanker Services of 23.5% each.
Rolls-Royce said it will receive GBP189 million for its 23% shareholding in AirTanker Holdings, which it will use to cut debt.
Babcock will get GBP126 million for its 15%, the third deal in its programme targeting GBP400 million in disposals. It also plans to use the money to pay down debt.
A spokesperson for Rolls-Royce told Alliance News that Airbus and Thales are not part of the deals announced today and remain stakeholders, although she couldn't comment on their future plans for AirTanker Holdings.
Equitix describes itself as a "developer and fund manager of core infrastructure and renewable energy assets in the UK and Europe". It has raised GBP7 billion in equity.
Shares in Rolls-Royce were up 0.5% to 109.67 pence in London on Monday morning. Babcock was up 2.0% to 347.10p.
By Ivan Edwards; [email protected]
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