MADRID/LONDON, Aug 4 (Reuters) – Britain’s Rolls-Royce is in unique talks with a consortium led by U.S. non-public fairness agency Bain Capital on a possible sale of its Spain-based ITP Aero unit, the engine maker mentioned on Wednesday.
Rolls-Royce mentioned there was no certainty an settlement shall be reached. It issued a press release prompted by a report in a Spanish newspaper which mentioned Bain and Spanish group Sener would pay 1.6 billion euros ($1.9 billion).
The British engine maker desires to promote 2 billion kilos ($2.8 billion) value of belongings to assist restore its steadiness sheet after the pandemic compelled it to tackle large new money owed. ITP is the most important asset on the block.
A price ticket of 1.6 billion euros would beat the 1.5 billion euros at which stories have valued ITP, a turbine blade-maker, which is able to stay a provider to Rolls-Royce after its sale.
Spanish newspaper Growth reported information of the ITP sale on Wednesday, citing unidentified monetary sources.
Ought to a deal materialise, it could be reassuring for shareholders eager to see the asset disposal programme, began virtually a yr in the past, make progress after solely minor gross sales up to now.
“We do see threat that Rolls is working under its goal in disposal proceeds, and we predict this might change into an rising concern for traders,” Financial institution of America analysts wrote in a current observe.
Growth mentioned each the Spanish authorities and authorities within the Basque area, the place ITP Aero relies, appeared favourably on a sale to Bain and Sener.
Sky Information had beforehand reported that rival Spanish aerospace group Aciturri was planning its personal bid, whereas monetary consumers KKR and TowerBrook Capital had additionally been reported to be within the working.
Bain declined to remark. Sener couldn’t instantly be reached for remark.
Earlier on Wednesday, Rolls-Royce agreed to promote its smaller Norwegian unit Bergen to a brand new purchaser 5 months after a take care of a Russian firm was blocked by Norwegian authorities.
Shares within the British group, which is because of report first-half outcomes on Thursday, closed up 1.4%.
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Reporting by Nathan Allen and Sarah Younger; Modifying by Alison Williams, Mark Potter and Mike Harrison