StockMarketWire.com - Aerospace engineer Rolls-Royce and defence contractor Babcock International said they had agreed to sell their respective holdings in re-fuelling group AirTanker to Equitix Investment Management.

AirTanker was a joint venture between Babcock, Rolls-Royce, Airbus and Thales.

It owned 14 A330 Voyager aircraft to support air-to-air refuelling, air transport and ancillary services for the UK Ministry of Defence.

Rolls-Royce agreed to sell its 23.1% shareholding to Equitix for £189 million, including the repayment of shareholder loans of about £47 million.

Babcock, meanwhile, sold its 15.4% stake for £126 million, including the repayment of shareholder loans of £31.1 million.

Both companies said they'd use the sale proceeds to pay down debt.


Story provided by StockMarketWire.com