Rolls-Royce soars after hitting disposal target with $2b ITP sale

Rolls-Royce said it had agreed to sell its Spanish unit ITP Aero to a consortium led by Bain Capital Private Equity for E1.7b, helping the British engineering group hit its GBP2b target for disposals. The sale, announced on Monday, sent Rolls-Royce shares soaring 11% to 148 pence, their highest level since March 2020 in the early weeks of the pandemic, on the view that recovery of Britain’s most famous industrial name is underway. Last year Rolls-Royce was floored by the COVID-19 pandemic as its airline customers stopped flying, resulting in a perilous few months before the company raised more cash and secured huge loans. To repair its balance sheet, it announced a GBP2b disposal plan in August 2020, with ITP the biggest asset on the block. The sale announced on Monday will help boost investor confidence in the group’s recovery, and built on positive sentiment after Rolls beat competitor engine makers to win a contract to power the US Air Force’s B-52 bombers.<br/>