§ Mr. Skinner
asked the Secretary of State for Industry if he will make a statement about the capital structure of Rolls-Royce (1971) Ltd.
§ Mr. Benn
The Government have agreed with RR(71) arrangements to increase the capitalisation of the company to a total figure of £112.3 million. Between 1971 and 1973 the Government advanced a net total of £85.3 million in respect of the costs of the settlement under which Rolls-Royce (1971) Ltd. purchased the aero-engine assets of Rolls-Royce Ltd. and as working capital for RR(71). The various sums so advanced by the Government are to be consolidated into £60 million of £1 ordinary shares and £25,263,650 of medium-term Government fixed interest loan. The remaining £27 million will be drawn when needed for the purposes of their business, and will be divided between equity and fixed interest loans in the same ratio as the initial £85.3 million.