On 13 September 2021, Babcock International Group PLC 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 loans.
Babcock is pleased to announce the completion of this transaction on 10 February 2022.
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.