Slaughter and May is advising Rolls-Royce on the restructuring of its network of Approved Maintenance Centre joint ventures.

The Approved Maintenance Centres (AMCs) carry out maintenance, repair and overhaul work on a range of Rolls-Royce aero engines, and the transaction involved the restructuring of three AMC joint ventures located in Hong Kong, Singapore and Germany.

The restructuring introduces a new business model, which replaces the current system of allocating engines to an AMC based on geographical location, with a more flexible model designed to increase competition.

The restructuring also involved simplifying the shareholding structures of the Hong Kong and Singapore AMC joint ventures, which will result in Rolls-Royce holding a 50 per cent. stake in each entity in return for an incremental investment of $206.5 million. The closing of the transaction is subject to certain conditions, including obtaining competition approval.

CONTACTS

Corporate and Commercial: Adam Eastell (partner), Gary Eaborn (partner), Angela Harford (associate), Steve Mackay (associate), Jonathan Murphy (associate), Joanna O’Brien (associate), Eliot Benzecrit (associate), Mike Herbert (trainee), Victoria Lee (trainee); Competition and Regulatory: Natalie Yeung (partner), Stephanie Tam (associate), Jonathan Slade (associate), Ying-Peng Chin (associate)