Rolls-Royce Seeking To Raise Up To 2.5 Bln Pounds To Strengthen Balance Sheet

(RTTNews) - Rolls-Royce Holdings plc (RYCEF.PK, RR.L, RYCEY.PK) said it is seeking to raise up to 2.5 billion pounds to strengthen its balance sheet, through a variety of options including a rights issue, new debt issue and other forms of equity issuance.

Rolls-Royce notes the continued media speculation regarding the possibility of the Group undertaking a fund raising.

Rolls-Royce said it continues to review all funding options and no final decisions have been taken as to whether or when to proceed with any of these options or as to the precise amount that may be raised.

The company said to be in talks with sovereign wealth funds such as Singapore's GIC about participating in the raise, the Financial Times reported, which will be launched in early October.

"We continue to review all funding options to enhance balance sheet resilience and strength," the company stated.

Rolls-Royce announced its major reorganization in May, is progressing well and is forecast to deliver at least 1.3 billion pounds in annual pre-tax cash savings by the end of 2022. The company expects a reduction of over 17% of its workforce, equivalent to more than 9,000 roles across the Group worldwide, including approximately 8,000 in Civil Aerospace business.

Rolls-Royce also announced the restructure of its civil aerospace division and aiming to raise more than 2 billion through selling off parts of the group, including its ITP Aero turbine-making business in Spain.