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RNS Number : 9639E
Rolls-Royce Holdings plc
16 April 2014
16 April 2014
ROLLS-ROYCE AND DAIMLER AGREE ON VALUATION OF DAIMLER'S EQUITY
INTEREST IN ROLLS-ROYCE POWER SYSTEMS
Rolls-Royce and Daimler today announce that they have agreed the
valuation of Daimler's 50% equity interest in the joint venture
Rolls-Royce Power Systems (RRPS). Both parties have determined the
fair market value of Daimler's shares at EUR 2.43 billion. The
transaction is expected to complete within the next five months and
is subject to the usual regulatory approvals.
This follows the announcement on March 7, 2014 that the Board of
Management of Daimler AG had decided to exercise the put option
relating to its shareholding in RRPS.
RRPS, which previously operated as Tognum AG, is a world leader
in reciprocating engines. It is headquartered in Friedrichshafen in
Southern Germany and employs around 11,000 people.
John Rishton, CEO of Rolls-Royce said: "We have enjoyed an
outstanding working relationship with Daimler and this agreement
represents a good outcome for both of our companies. Rolls-Royce
Power Systems has added scale and capability to our reciprocating
engines business. It has world class technology, operates in long
term growth markets and has proved a valuable addition to our
Marine and Industrial Power Systems division."
Dr. Wolfgang Bernhard, Daimler's Board of Management Member for
trucks and buses, added: "We are pleased to reach an agreement with
Rolls-Royce in such a short period of time. This underlines the
profound partnership established during the past years.
Irrespective of the ownership situation, we will keep connections
to RRPS based on our existing supplier relationship."
About Rolls-Royce Holdings plc
1. Rolls-Royce's vision is to create better power for a changing
world via two main business segments, Aerospace and Marine &
Industrial Power Systems (MIPS). These business segments address
markets with two strong technology platforms, gas turbines and
reciprocating engines, for use on land, at sea and in the air.
2. Aerospace comprises Civil Aerospace and Defence Aerospace.
MIPS comprises Marine, Energy & Nuclear and Power Systems.
Rolls-Royce currently has 50% ownership of Rolls-Royce Power
Systems (RRPS) which is subject to today's announcement.
3. Rolls-Royce has customers in more than 120 countries,
comprising more than 380 airlines and leasing customers, 160 armed
forces, 4,000 marine customers, including 70 navies, and 1,600
energy and nuclear customers.
4. Our business is focused on the 4Cs:
-- Customer - placing the customer at the heart of our business
-- Concentration - deciding where to grow and where not to
-- Cost - continually looking to increase efficiency
-- Cash - improving financial performance.
5. Annual underlying revenue was GBP15.5 billion in 2013, around
half of which came from the provision of aftermarket services. The
firm and announced order book stood at GBP71.6 billion at 31
December 2013.
6. In 2013, Rolls-Royce invested GBP1.1 billion on research and
development. We also support a global network of 31 University
Technology Centres, which position Rolls-Royce engineers with the
forefront of scientific research.
7. Rolls-Royce employs over 55,000 people in 45 countries. Over 17,000 of these are engineers.
8. The Group has a strong commitment to apprentice and graduate
recruitment and to further developing employee skills. In 2013 we
employed 379 graduates and 288 apprentices through our worldwide
training programmes.
For further information, please contact:
Media:
Richard Wray
Director of External Communications
Rolls-Royce plc
Tel: +44 (0)7974 918416
richard.wray@rolls-royce.com
Investors:
Simon Goodson
Director - Investor Relations
Tel: +44 (0)20 7227 9237
simon.goodson@rolls-royce.com
www.Rolls-Royce.com
This information is provided by RNS
The company news service from the London Stock Exchange
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