- A price tag of 1.6 billion euros would beat the 1.5 billion at which reports have valued ITP, a turbine blade-make
MADRID: Rolls-Royce is set to sell its Spain-based ITP Aero unit to US private equity firm Bain Capital and Spanish group Sener for 1.6 billion euros ($1.9 billion), a Spanish newspaper said, in a deal that would boost the British company's finances.
Engine-maker Rolls-Royce wants to sell 2 billion pounds ($2.8 billion) worth of assets to help repair its balance sheet after the pandemic forced it to take on huge new debts. ITP is the biggest asset on the block.
A price tag of 1.6 billion euros would beat the 1.5 billion at which reports have valued ITP, a turbine blade-maker, which will remain a supplier to Rolls-Royce after the deal.
Spanish paper Expansion reported the news on Wednesday, citing financial sources.
It said both the Spanish government and authorities in the Basque region, where ITP Aero is based, looked favourably on a sale to Bain and Sener.
Sky News had previously reported that rival Spanish aerospace group Aciturri was planning its own bid, while financial buyers KKR and TowerBrook Capital had also been reported to be in the running.
Bain Capital declined to comment. Rolls-Royce and Sener could not immediately be reached for comment.
The British company agreed to sell its much smaller Norwegian unit Bergen earlier on Wednesday, and is due to report first-half results on Thursday.
Rolls-Royce shares were up 1.4% to 104.5 pence in late deals.