Rolls-Royce Holdings PLC (LSE:RR.) has agreed the sale of its 23.1% shareholding in AirTanker Holdings Limited to Equitix Investment Management for cash proceeds of £189mln.
AirTanker Holdings is a joint venture with Airbus, Babcock International (LSE:BAB) Group PLC and Thales.
Rolls said it will also receive repayment of shareholder loans and accrued and deferred interest of approximately £47mln with the disposal expected to complete by the end of the first quarter of 2022.
AirTanker’s fleet comprises flies14 A330-200 Voyager aircraft powered by Rolls-Royce Trent 772B engines.
The fleet supports air-to-air refuelling, air transport and ancillary services for the UK Ministry of Defence.
This fleet is operated by AirTanker Services, in which Rolls-Royce will continue to be a 23.5% shareholder.
Tom Bell, President Rolls-Royce Defence, said: "The sale of our shareholding in AirTanker Holdings is another important step towards achieving our group target to generate at least £2bn from disposals.”
Babcock separately said it will generate £126mln from the sale of its 15.4% stake in AirTanker Holdings, which includes loans of £31.1mln.