Business
Rolls-Royce to acquire stake in ITP from Sener
Rolls-Royce to acquire stake in ITP from Sener.
About this update from Rolls-royce Holdings Plc
[{"type":"text","content":"\n \nRNS Number : 7480D Rolls-Royce Holdings plc 11 July 2016 \n\n11 July 2016\nROLLS-ROYCE HOLDINGS PLC\nACQUISITION OF OUTSTANDING STAKE IN ITP FROM SENER\n \nRolls-Royce Holdings plc announces that it will purchase the outstanding 53.1% shareholding in Industria de Turbo Propulsores SA (\"ITP\") owned by SENER Grupo de Ingeniería SA (\"SENER\"). The acquisition strengthens Rolls-Royce's position on its Civil Aerospace large engine growth programmes by capturing significant additional value from its long-term aftermarket revenues, including the high volume Trent 1000 and Trent XWB engines, 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.\n \nRolls-Royce will pay SENER a total consideration of EUR 720m, subject to due diligence, for the outstanding 53.1% of ITP. This follows a decision by SENER to exercise its put option. Under the existing shareholder agreement, consideration will be settled over a two year period following completion in eight equal, evenly spaced instalments. The agreement allows flexibility to settle up to 50% of the consideration in the form of Rolls-Royce shares. Final consideration as to whether the payments will be settled in cash, or cash and shares will be determined by Rolls-Royce during the payment period. Completion, which is subject to regulatory clearances, is expected in early 2017.\n \nWarren East, Rolls-Royce, CEO, said: \"We welcome the opportunity to acquire the outstanding stake in ITP. ITP has been a trusted partner for Rolls-Royce over many years as well as working for other engine manufacturers. This investment will add to our aerospace capability, with excellent facilities, services and products, to generate additional opportunities for profitable growth. We look forward to forging a closer and more productive future together, and to welcoming ITP's employees into Rolls-Royce. I would like to thank SENER for their close relationship over three decades as we have built this exceptional business.\"\n \nJorge Sendagorta, SENER, President, stated: \"We inspired the creation of ITP in 1989 and, over the years, supported the extraordinary management and professionals of the company ...