Rolls-Royce Raises Stakes in Maintenance Centre Joint Ventures

By Ian Walker

LONDON--Rolls-Royce Holdings PLC (RR.LN) Monday raised its shareholding in two of its maintenance center joint ventures to encourage greater capability and flexibility across the Trent service network.

Rolls-Royce will buy Hong Kong Aero Engine Services Ltd.'s 20% interest in Singapore Aero Engine Services Pte Ltd. for $270 million, increasing its share to 50%. Hong Kong Aero Engine Services will then distribute the $270 million to its three shareholders, which includes Rolls-Royce.

It will also buy an extra 5% stake in Hong Kong Aero Engine Services for $58 million, increasing its interest to 50%. The shareholding arrangements with Lufthansa Technik AG for N3 Engine Overhaul Services GmbH and Co. KG remain unchanged at 50-50 ownership.

"This announcement demonstrates our determination to work closely with our joint venture partners to build an even more competitive, capable and flexible Trent service network and to further improve our TotalCare services for our customers," Eric Schulz, Rolls-Royce, President - Civil Large Engines said.

"The joint venture shareholding changes will also help to simplify our business," Mr. Schulz said.

-Write to Ian Walker at ian.walker@wsj.com; @IanWalk40289749

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(END) Dow Jones Newswires

November 23, 2015 08:58 ET (13:58 GMT)

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