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LONDON, Feb 4 (Reuters) - Britain's Rolls-Royce
agreed to sell its Bergen Engines unit to Russia-based TMH Group
for net proceeds of 150 million euros ($180 million), making
initial progress with a disposal plan aimed at helping it
survive the pandemic.
The aero engines-maker is aiming to raise 2 billion pounds
in total from asset sales, and the disposal of Norwegian-based
Bergen announced on Thursday follows that of another small
business, its civil nuclear instrumentation unit, last December.
COVID-19 has shattered Rolls-Royce's finances because it is
paid by airlines on a flying-hours basis, and the company warned
last week that travel would be even more constrained than it
expected this year, meaning higher cash outflows.
The major part of Rolls-Royce's disposal plan will be the
sale of its Spain-based ITP Aero. Analysts have said smaller
units would make up the remainder of the disposal target.
"The sale of Bergen Engines is a part of our ongoing
portfolio evaluation to create a simpler, more focused group and
contributes towards our target to generate at least 2 billion
pounds from disposals," Rolls-Royce CEO Warren East said.
From its factory in Norway, Bergen makes medium speed gas
and diesel engines for marine and power generation customers and
employs about 950 people. It generated revenues of 239 million
pounds in 2019, said Rolls-Royce.
TMH Group is a supplier of rail rolling stock and will fold
Bergen into its TMH International branch, said the Rolls-Royce
statement.
($1 = 0.8342 euros)
(Reporting by Sarah Young; editing by Estelle Shirbon)
