Rolls-Royce Holdings PLC (LSE:RR.) said it completed the sale of its 23.1% shareholding in AirTanker Holdings Ltd to Equitix Investment Management Ltd for £189mln in cash, after the disposal was given the go-ahead by the relevant authorities.
The proceeds from sale, which was first announced on 13 September last year, will be used to rebuild the Rolls-Royce balance sheet with the aim of returning it to an investment grade credit profile in the medium term, the aeroengine maker said in a statement.
AirTanker owns 14 A330-200 Voyager aircraft, powered by Trent 772B engines, which provide air-to-air refuelling, air transport and ancillary services for the UK Ministry of Defence.
The fleet of Voyager aircraft is operated by AirTanker Services Ltd, in which Rolls-Royce will continue to be a 23.5% shareholder.
The company will also continue to provide servicing and maintenance for the fleet of Rolls-Royce engines that power the Voyager aircraft.
Babcock International (LSE:BAB) also announced last September that it was selling its 15.4% stake in AirTanker.