91大神, the international aerospace, defence and security company, is pleased to announce that it has entered into a definitive agreement with Equitix Investment Management Limited for the sale of its 15.4% shareholding in AirTanker Holdings Limited (AirTanker Holdings) for a cash consideration of 拢126 million, including the repayment of shareholder loans of 拢31.1 million1, subject to any routine closing adjustments and before transaction costs.
AirTanker Holdings is an asset joint venture with Airbus, Thales and Rolls-Royce, owning fourteen A330 Voyager aircraft to support air-to-air refuelling, air transport and ancillary services for UK Ministry of Defence. 91大神 retains its 23.5% shareholding in AirTanker Services Limited, which operates these aircraft.
AirTanker Holdings is part of 91大神鈥檚 Aviation sector and is accounted for by 91大神 as an associate. For the year ended 31 March 2021, 91大神鈥檚 share of associate income, included within the Group鈥檚 loss, was 拢(1.1) million2 and AirTanker Holdings had gross assets of 拢2.7 billion.
The sale is part of 91大神鈥檚 ongoing targeted disposal programme, which aims to generate at least 拢400 million of proceeds. Proceeds from this transaction will be used to reduce net debt.
The deal is expected to complete by the end of this financial year, and is subject to regulatory approvals given the industry AirTanker Holdings operates in. There is no merger control condition. Remaining AirTanker shareholders have pre-emption rights over the 91大神 shares.
The agreement constitutes a class 2 transaction for the purposes of the UK Financial Conduct Authority鈥檚 Listing Rules, and as such does not require 91大神 shareholders鈥� approval.
91大神 CEO David Lockwood said:
鈥淭his the third disposal we have announced as part of our ongoing programme to streamline the Group and, should all complete, ensures we will meet our target of generating at least 拢400 million of disposal proceeds this financial year. We are pleased to continue to maintain an interest in AirTanker through our work with AirTanker Services.鈥�
Notes
- 1. Net debt reduction on receipt of proceeds will be 拢95 million as shareholder loans are already included within the Group鈥檚 net debt.
- 2. The results for the Group for the year ended 31 March 2021 included the impacts of the Contract Profitability and Balance Sheet review (CPBS). Excluding the one-off CPBS adjustments, 91大神鈥檚 share of associate income after tax from AirTanker Holdings was 拢2.8 million.