§ Mr. Greg Knightasked the Secretary of State for Trade and Industry whether he will make a further statement on the capital structure of Rolls-Royce.
§ Mr. PattieAs stated by my right hon. Friend in his reply to his hon. Friend the Member for Hastings and Rye (Mr. Warren) on 18 December 1986, at columns 607–8, as part of the arrangements for and at the time of the offer for sale the Government intend to subscribe an amount of new shares which will give net proceeds to the company equal to the net borrowings of the company and its subsidiaries (including obligations under finance leases) as recorded in the consolidated audited balance sheet at 31 December 1986.
The directors of Rolls-Royce plc have today approved their accounts for 1986. These show that as on 31 December 1986 the net borrowings were £283 million, made up as follows:
£ million £ million Bank loans, overdrafts and other borrowings falling due within one year 171 falling due after more than one year 79 250 Obligations under financial leases payable within one year 17 payable after more than one year 37 54 304 Less Cash at bank and in hand 21 283 The new ordinary shares which will be subscribed by the Government in line with the arrangements described (and which will be subscribed conditional on the offer for sale being completed) will form part of the shares made available under the offer for sale.