Rolls-Royce Holdings PLC (LON:RR.) has confirmed it is reviewing strategic options for its L’Orange arm.
The confirmation comes after Bloomberg reported on Friday the company is seeking to raise as much as US$700mln from the sale of L’Orange, the Germany-based business that makes fuel injectors for diesel engines used in ships and industrial applications.
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Rolls-Royce said it intends to maintain close ties to L’Orange as either an owner or as a key customer following its review.
“This review has no impact on the remainder of the Rolls-Royce Power Systems business and any decision about the future of L'Orange would be subject to the approval of the supervisory board of Rolls-Royce Power Systems,” it said.
The engine marker reportedly started showing L’Orange’s financial data to potential bidders, including private equity firms and strategic buyers, in December and is nearing a deal.
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Chief executive Warren East has been streamlining the business by ridding layers of management and cutting less successful products since taking over the reins in 2015.
Reports that L’Orange was for sale first emerged in November in The Sunday Times.