RAINER UPHOFF / MADRID
Spain to offload stake in R-R partner ITP in latest step in second-tier restructuring
Spanish state holding company SEPI is to sell its indirect stake in engine manufacturer ITP. The move will add impetus to the ongoing restructuring of second-tier European engine manufacturers sparked by the takeover of the former FiatAvio by Carlyle Group and Finmeccanica, and Daimler-Chrysler's decision to sell MTU.
ITP, which was founded in 1989, is owned 47% by Rolls-Royce and 53% by the Turbo2000 consortium. SEPI holds 50% of Turbo2000, which has management control of ITP, with engineering firm SENER owning the rest.
SEPI has also received SENER's mandate to sell its shares in the offering, meaning that 100% of Turbo2000 - and consequently management control of ITP - are for sale. SENER also holds priority rights to acquire SEPI's shares by matching the best offer.
SEPI says: "The bidder will have to comply with certain industrial and technological requirements. We will receive offers until 17 October." The company believes that the sale will be successful despite the recent failure of the merger project with Gamesa Aeronautica under the Alerion banner.
"The fact that none of the shareholders withdrew their support after the merger negotiations collapsed shows that ITP has a very strong industrial and economical project of its own," says the company. It adds that 14 year-old ITP is "one of the leading engine manufacturers in the world and an attractive company for investment because of its key positions in the Eurojet, Tiger MTR390, TP400 and [Rolls-Royce] Trent 500, 700, 800 and 900 programmes".
R-R declines to comment on a potential bid for Turbo2000 and on whether the UK manufacturer will team up with an investment fund, as reported by the Spanish media. It says: "ITP is a crucial partner and a preferential supplier for Rolls-Royce. The fact that ITP has been awarded a key contract - the low pressure turbine - for the Trent 900 programme, shows our confidence in ITP's technical and financial capability."
SENER has not yet made its position public. It will have to decide between cashing in on ITP's success or acquiring the majority stake and full management control.
In 2002 ITP made a net profit of €15.5 million ($18.3 million) on sales of €388 million. The sale of SEPI's ITP holding will mark its exit from the aerospace sector, with the exception of its 5.5% stake in EADS.
Source: Flight International
