Rolls-Royce and Babcock Engineering announced that they have reached an agreement with Equitix Investment Management Limited to sell their respective stakes in AirTanker Holdings Limited.
AirTanker Holdings Limited, a joint venture with Airbus, Babcock, Rolls-Royce, and Thales, owns 14 A330-200 Voyager aircraft. The Voyager aircraft support air-to-air refueling, air transport, and ancillary services for the U.K. Ministry of Defence.
Rolls-Royce has agreed to sell its 23.1 percent shareholding for GBP189 million ($261 million) in cash, including the repayment of shareholder loans and accrued and deferred interest of approximately GBP47 million ($65 million), subject to any routine closing adjustments and before transaction costs. The sale is part of an overall cost-cutting effort, and Rolls-Royce will use the proceeds to reduce debt.
Babcock has agreed to sell its 15.4 percent stake in AirTanker for GBP126 million ($174 million) in cash, including the repayment of shareholder loans of GBP31.1 million ($43 million), subject to any routine closing adjustments and before transaction costs. The sale is part of Babcock’s ongoing targeted disposal program, which aims to generate at least GBP400 million of proceeds to reduce debt.
Rolls-Royce and Babcock will continue to hold their respective 23.5 percent stakes in AirTanker Services Limited, which provides servicing and maintenance for the Voyager aircraft in support of the Royal Air Force.
The transaction is expected to complete by the end of the first quarter of 2022, subject to regulatory approvals. Remaining AirTanker shareholders have pre-emption rights over the shares for sale.
Forecast International’s Defense & Aerospace Companies, Volume II – International service includes coverage of over 90 top companies and subsidiaries outside North America, with a focus on key players in Europe and Asia. Each of the volume’s 50+ reports contains data on recent programs, mergers, and joint ventures. Among the notable corporations covered are OEMs such as Airbus, Aviation Industry Corporation of China (AVIC), BAE Systems, UAC, and Embraer. Also featured are Tier I and Tier II contractors such as Rolls-Royce, Hanwha, Rafael, RUAG, and IHI Corporation. Pricing begins at $2,295, with discounted full-library subscriptions available. Click here to learn more.
A military history enthusiast, Richard began at Forecast International as editor of the World Weapons Weekly newsletter. As the Internet grew in importance as a research tool, he helped design the company's Forecast Intelligence Center and currently coordinates the EMarket Alert newsletters for clients. Richard also manages social media efforts, including two new blogs: Defense & Security Monitor, covering defense systems and international issues, and Flight Plan, which focuses on commercial aviation and space systems. For over 30 years, Richard has authored the Defense & Aerospace Companies, Volume I (North America) and Volume II (International) services. The two books provide detailed data on major aerospace and defense contractors. He also edits the International Contractors service, a database that tracks all the contractors involved in the programs covered in the FI library. More recently he was appointed Manager, Information Services Group (ISG), a new unit that encompasses developing outbound content for both Forecast International and Military Periscope.
