According to a report by Reuters on Monday, Rolls-Royce announced an agreement to sell its Spanish unit ITP Aero to a consortium led by Bain Capital Private Equity for $2 billion.
- The sale triggered an 11% jump in Rolls-Royce shares to 148 pence, on the view that the recovery of Britain’s most recognizable industrial brand is ongoing.
- In 2020, Rolls-Royce was significantly hurt by the COVID-19 pandemic as its airline customers stopped flying, leading to a perilous few months before the company raised more cash and secured huge loans.
- In a bid to repair its balance sheet, it announced a 2 billion pound disposal plan in August 2020, with ITP the biggest asset on the plan.
- The sale disclosed on Monday will help to bolster investor confidence in the group’s recovery and built on positive sentiment after Rolls beat rivals to win a contract to power the U.S. Air Force’s B-52 bombers.
Rolls-Royce has also disposed of smaller assets, including a stake in Air Tanker Holdings, its Bergen Engines division in Norway, and a civil nuclear instrumentation and control unit. RR up +10.06%