British aerospace company Rolls-Royce announced on Monday that it will be selling its 23.1% stake in UK military refueling jet-owner AirTanker Holdings to private infrastructure investor Equitix Investment Management for £189mn ($261mn). As part of the deal, Babcock International Group will also be selling its 15.4% stake for £126mn ($174mn). This is part of Rolls-Royce’s £2bn asset disposal plan in a bid to trim debt and improve its balance sheet. AirTanker Holdings owns 14 A330 RAF Voyager jets used for refueling and transportation by the British Ministry of Defence. Rolls-Royce and Babcock will however continue to own 23.5% each in AirTanker Services, which operates the 14 jets. The transactions are subject to regulatory approval.

Rolls-Royce’s 5.75% 2027s traded 0.25 points higher to 110.255 yielding 3.77% currently.

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