TIDMRR.
RNS Number : 3314Q
Rolls-Royce Holdings plc
28 November 2016
28 November 2016
ROLLS-ROYCE CONFIRMS VALUATION OF THE OUTSTANDING SHAREHOLDING
IN ITP
Rolls-Royce Holdings plc ("Rolls-Royce") today confirmed the
valuation of EUR 720m for the 53.1% shareholding in Industria de
Turbo Propulsores SA ("ITP") currently owned by SENER Grupo de
Ingeniería SA. This follows completion of due diligence, subsequent
to the announcement in July 2016, that Rolls-Royce will purchase
the outstanding stake.
Under the agreement, consideration will be settled over a
two-year period following completion in eight evenly spaced
instalments of equal value. The updated agreement allows
flexibility to settle the consideration either in cash, in the form
of Rolls-Royce shares or any mixture of the two, as preferred by
Rolls-Royce. A decision as to whether each payment will be settled
in cash, shares or cash and shares will be determined by
Rolls-Royce during the payment period.
Completion remains subject to regulatory clearances and is
expected in 2017.
The acquisition of ITP strengthens Rolls-Royce's position on its
Civil Aerospace large engine growth programmes by capturing
significant additional value from long-term aftermarket revenues,
including on the high volume Trent 1000 and Trent XWB engine
programmes where ITP has played a key role as a risk and revenue
sharing partner. It also enhances the group's manufacturing and
services capabilities and adds value to the Defence Aerospace
business, particularly on the TP400 and EJ200 programmes. With
their excellent facilities, services and products, ITP has been a
trusted partner for Rolls-Royce and other engine manufacturers.
Warren East, Rolls-Royce, CEO, said: "We have enjoyed a
successful partnership with SENER, building ITP to its current
scale and capability. This agreement represents the best outcome
for both of our companies and we look forward to welcoming ITP's
employees into Rolls-Royce."
Ignacio Mataix, ITP, CEO added: "I am delighted that we can now
start planning our integration into the Rolls-Royce family. We
already know Royce-Royce well and are excited about the
opportunities offered by joining a global leader in advanced
engineering. We look forward to creating even better aerospace
products and services together. At the same time, we will maintain
our current portfolio and strengthen our global position."
About Rolls-Royce Holdings plc
1. Rolls-Royce's vision is to be the market-leader in high
performance power systems where our engineering expertise, global
reach and deep industry knowledge deliver outstanding customer
relationships and solutions. We operate across five businesses:
Civil Aerospace, Defence Aerospace, Marine, Nuclear and Power
Systems.
2. Rolls-Royce has customers in more than 120 countries,
comprising more than 400 airlines and leasing customers, 160 armed
forces, 4,000 marine customers including 70 navies, and more than
5,000 power and nuclear customers.
3. We have three common themes across all our businesses:
-- Investing in and developing engineering excellence
-- Driving a manufacturing and supply chain transformation which
will embed operational excellence in lean, lower-cost facilities
and processes
-- Leveraging our installed base, product knowledge and
engineering capabilities to provide customers with outstanding
service through which we can capture aftermarket value long into
the future.
4. Annual underlying revenue was GBP13.4 billion in 2015, around
half of which came from the provision of aftermarket services. The
firm and announced order book stood at GBP79.5 billion at the end
of June 2016.
5. In 2015, Rolls-Royce invested GBP1.2 billion on research and
development. We also support a global network of 31 University
Technology Centres, which position Rolls-Royce engineers at the
forefront of scientific research.
6. Rolls-Royce employs over 50,000 people in more than 46
countries. More than 16,000 of these are engineers.
7. The Group has a strong commitment to apprentice and graduate
recruitment and to further developing employee skills. In 2015 we
employed 228 graduates and 277 apprentices through our worldwide
training programmes.
About Industria de Turbo Propulsores SA
ITP is the ninth largest aircraft engine and components company
in the world by revenue. The company has production centres in
Spain, United Kingdom, Mexico, the United States, Malta and India
with over 3,000 employees.
ITP includes among its activities the design, research and
development, manufacturing and casting, assembly and testing of
aeronautical engines. It also provides MRO services for a wide
range of engines for regional airlines, business aviation,
helicopters, industrial and defence applications.
For further information, please contact:
Investors:
John Dawson
Director of Investor Relations
Rolls-Royce plc
Tel: +44 (0)20 7227 9237
jcdawson@rolls-royce.com
Media:
Richard Wray
Director of External Communications
Rolls-Royce plc
Tel: +44 (0)20 7227 9163
richard.wray@rolls-royce.com
www.Rolls-Royce.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
FURBSBDBSXDBGLI
(END) Dow Jones Newswires
November 28, 2016 10:15 ET (15:15 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
Rolls-royce (LSE:RR.)
Historical Stock Chart
From Mar 2024 to Apr 2024
Rolls-royce (LSE:RR.)
Historical Stock Chart
From Apr 2023 to Apr 2024