Struggling defence contractor Babcock in talks to offload emergency aviation arm
Babcock International is in talks to sell most of a troublesome division that provides emergency plane and helicopter services.
The FTSE 250 defence contractor is negotiating with infrastructure investor Ancala Partners to offload a large stake in the business.
It is the latest in a string of sales overseen by Babcock boss David Lockwood to turn the company around after years ofunderperformance.
Babcock’s emergency aviation services arm operates the UK’s Air Ambulance fleet, search and rescue operations abroad and firefighting planes and helicopters
The emergency aviation services arm operates the UK’s Air Ambulance fleet, search and rescue operations abroad and firefighting planes and helicopters.
It was part of a much wider group called Avincis, which Babcock bought under previous boss Archie Bethel in 2014 for £1.6billion.
But the business was dogged with problems and became a major financial burden.
The emergency aviation services group would be valued at around £100million if the deal with Ancala goes ahead, Sky News reported.
The Financial Reporting Council accounting watchdog is investigating PwC’s audits of Babcock after it took huge writedowns and after spot checks found the quality of its work was sub-standard.