Rolls-Royce to sell its Norwegian engine business

Rolls-Royce to sell its Norwegian engine business

LONDON - Rolls-Royce said it had agreed to sell its Norwegian fleet engine business Langley Holdings to UK-based Langley Holdings, in a deal that will boost the British aero-engine maker's finances by 110 million euros.

The sale is a small part of Rolls's 2 billion pound disposal plan to help repair its finances after the pandemic. For investors, progress with the sale of Rolls's Spanish unit ITP Aero, which could fetch 1.5 billion euros, is more interest.

Before the agreement of Rolls-Royce to sell Bergen to a Norwegian company for 150 million euros was blocked on national security grounds by Russia in March.

After that attempt failed, Bergen will only refund 110 million euros to Rolls.

Rolls said on Wednesday that the privately held industrial group Langley was buying Bergen for an enterprise value of 63 million euros, and would benefit from sales proceeds of 70 M€ plus 40 million euros of cash currently held by Bergen.

Closing of the deal is subject to the satisfaction of certain closing conditions, said Rolls, adding that it had notified Norway and effective completion was scheduled for Dec. 31.

Langley, based in Nottinghamshire, central England, employs 4,600 people and has units in Germany, France and Italy. It will operate Bergen as a stand-alone business, said the statement.