Source - LSE Regulatory
RNS Number : 2992K
Babcock International Group PLC
01 September 2021
 

1 September 2021

 

Babcock International Group PLC (Babcock or the Group)

 

Sale of Oil and Gas aviation business

 

Babcock, the international aerospace, defence and security company, has completed the sale of its Oil and Gas aviation business to CHC Group, LLC (CHC) for a cash consideration of £10 million.

 

The Oil and Gas business, which is part of the Group's Aviation sector, provides offshore oil and gas crew transportation services in the UK, Denmark and Australia. It is headquartered in Aberdeen, UK, and employs over 500 people and operates around 30 aircraft across its three locations.

 

For the year ending 31 March 2021, it had revenue of £154 million, a loss before tax of £2 million and underlying operating profit of £2 million. As of 31 March 2021, it had gross assets of £256 million, net assets excluding cash of £21 million and net lease liabilities of £142 million.

 

The sale is part of Babcock's targeted disposal programme, which aims to generate at least £400 million of proceeds. Proceeds from this transaction will be used to reduce net debt.

 

The agreement constitutes a class 2 transaction for the purposes of the UK Financial Conduct Authority's Listing Rules, and as such does not require Babcock shareholders' approval.

 

Babcock CEO David Lockwood said:

"This disposal is part of our plan to streamline and focus the group on our key markets. Divesting at least £400 million of businesses will enable us to reduce complexity and increase our focus as we return Babcock to strength. The oil and gas aviation business has found a new home and we wish them all the best for the future."

 

 

For further information please contact:

Simon McGough, Director of Investor Relations

+44 (0)7850 978 741

Kate Hill, Group Director of Communications

+44 (0)20 7355 5312

Tulchan Communications

+44 (0)20 7353 4200

 

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.
 
END
 
 
DISBIGDISBXDGBB
Find out how to deal online from £1.50 in a SIPP, ISA or Dealing account.