Completion of the sale of stake in AirTanker Holdings
10 February 2022
On 13 September 2021, Babcock International Group PLC ("Babcock" or "the Group") announced that it had entered into a definitive agreement with Equitix Investment Management Limited for the sale of its 15.4% stake in AirTanker Holdings Limited (AirTanker Holdings) for a cash consideration of £95 million, net of shareholder loans1. Today Babcock is pleased to announce the completion of this transaction.
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. Babcock retains its 23.5% shareholding in AirTanker Services Limited, which operates these aircraft.
AirTanker Holdings is part of Babcock's Aviation sector and is accounted for by Babcock as an associate. For the year ended 31 March 2021, Babcock's share of associate income was £2.8m on an underlying basis, and interest income of £2.1 million was included within the Group's net finance costs. At 31 March 2021 AirTanker Holdings had gross assets of £2.7 billion.
The sale is part of Babcock's ongoing targeted disposal programme. This is the fourth disposal completed, bringing gross proceeds generated to date to £448 million.
Ends
| For further information:
| |
| Andrew Gollan, Director of Investor Relations | +44 (0)7936 039004 |
| Kate Hill, Group Director of Communications | +44 (0)20 7355 5312 |
| | |
| Tulchan Communications | |
| Olivia Peters / Harry Cameron | +44 (0)20 7353 4200 |
Note
1The total cash consideration was £126 million, which included the repayment of shareholder loans of £31.1 million. This shareholder loan was previously included in the Group's net debt.
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