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Rolls-Royce receives offer for ITP share sale

Rolls-Royce is in talks with Spanish technology company Indra about the potential sale of a majority shareholding in the UK engine maker's Bilbao-headquartered subsidiary ITP Aero.

Derby-based R-R confirms that it has received "a preliminary and conditional indication of interest" from Indra to acquire a shareholding in ITP.

Indra says that no decision has been made and that "it cannot be determined at this date whether such ongoing conversations will lead to… a definitive decision".

Studying "arising investment opportunities" is part of the company's regular business activity, the Madrid-based group says.

R-R describes ITP as a "key partner" and says that it "intends to retain a long-term relationship with the business across its civil aerospace and defence programmes".

In 2017, R-R took full control of ITP when it acquired a 53% stake from Spanish group Sener.

ITP supplies components for a range of commercial, defence and industrial gas turbine programmes at R-R and other engine manufacturers.

This includes supply of low-pressure turbines for the Trent 1000, 7000 and XWB programmes as risk and revenue-sharing partner.

Additionally, ITP is involved in the development of the intermediate pressure turbine for R-R's future UltraFan programme.

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