Rolls-Royce confirms valuation of outstanding shareholding in ITP

Rolls-Royce confirmed the valuation of €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. 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.