Rolls-Royce Holdings (LON:RR) has confirmed that it has received interest from Spain’s Indra Sistemas SA to buy a majority stake in its Spanish business ITP Aero, the blue-chip engine maker has said. The update follows the company’s annual general meeting statement last month when the group reported that it remained confident in its underlying operating profit and free cash flow guidance of £700 million +/- £100 million.
As of 14:38 BST, Rolls-Royce’s share price had given up 0.22 percent to 895.00p, marginally outperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.51 percent lower at 7,330.93 points. The group’s shares have added less than three percent to their value over the past year, as compared with about a 5.5-percent fall in the Footsie.
Rolls-Royce confirms talks with Indra
Rolls-Royce announced in a short statement to the London Stock Exchange today that it had received a preliminary and conditional indication of interest from Indra to acquire a majority stake in its ITP Aero business. The British engine maker, however, cautioned that the indication of interest was “subject to a number of conditions,” and that there was “no certainty that this will result in a transaction involving ITP Aero”.
Reuters noted in its coverage of the news that Rolls-Royce had bought a 53.1% stake in Industria de Turbo Propulsores SA (ITP Aero) it did not already own from privately owned SENER Grupo de Ingeniería SA for €720 million back in 2017.
Analysts on FTSE 100 engine maker
The 16 analysts offering 12-month targets for the Rolls-Royce share price for the Financial Times have a median target of 1,095.00p, with a high estimate of 1,288.00p and a low estimate of 760.00p. As of June 11, the consensus forecast amongst 19 polled investment analysts covering the blue-chip company advises investors to hold their position in the company.