ROLLS-Royce yesterday announced that it had agreed to sell its 50 per cent stake in the RTM322 helicopter engine programme to joint venture partner Safran in a €293m (£250m) deal.
The sale to the French technology group is expected to complete before the year-end and is part of the car manufacturer’s strategy to divest superfluous parts of its portfolio and focus on its core assets.
A Rolls-Royce spokesperson said in a statement: “We need to concentrate on the core defence programmes that we believe offer us the best future potential. We will now work closely with [Safran subsidiary] Turbomeca to ensure a smooth transition of the programme and with employee representatives to manage any employment impact.”
Yan Derocles, analyst at Oddo Securities, told City A.M. that the deal would be “limited” for Safran in terms of cash generation and would be too minor to affect its share price.
Neither Rolls-Royce nor Safran would disclose if any banks were advising on the deal.