Britain’s Rolls-Royce (RR.L) is in exclusive talks with a consortium led by U.S. private equity firm Bain Capital on a potential sale of its Spain-based ITP Aero unit, the engine maker said on Wednesday.
Rolls-Royce said there was no certainty an agreement will be reached. It issued a statement prompted by a report in a Spanish newspaper which said Bain and Spanish group Sener would pay 1.6 billion euros ($1.9 billion).
The British engine maker wants to sell 2 billion pounds ($2.8 billion) worth of assets to help repair its balance sheet after the pandemic forced it to take on huge new debts. ITP is the biggest asset on the block.
A price tag of 1.6 billion euros would beat the 1.5 billion euros at which reports have valued ITP, a turbine blade-maker, which will remain a supplier to Rolls-Royce after its sale.
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