Rolls Royce's sale of Spanish subsidiary gets green light from government

Engine manufacturer Rolls-Royce said on Wednesday that the Spanish government had approved the sale of its ITP Aero subsidiary to a consortium of investors led by Bain Capital Private Equity.

Rolls-Royce stated the government's sign-off on the deal follows the receipt of approval from all other relevant regulatory authorities.

As a result, completion of the transaction, at an enterprise value of approximately €1.8bn, was expected to take place in the coming weeks.

The FTSE 100-listed firm added that the sale, which was originally revealed on 27 September 2021, now completed its £2.0bn disposal programme announced on 27 August 2020.

Upon completion, sale proceeds of approximately €1.7bn will be used to help rebuild Rolls-Royce's balance sheet, in support of its ambition to return to an investment grade credit profile in the medium term.

Reporting by Iain Gilbert at Sharecast.com