Rolls Royce shares rose 1.6% to 89.2p in late afternoon trading on Wednesday after the luxury car group received the green light from the Spanish government to sell its ITP Aero subsidiary for €1.8 billion.
The group has been purchased by a consortium of investors led by Bain Capital Private Equity, with the transaction scheduled to close in the coming weeks.
Rolls Royce announced that all regulatory authorities had approved the deal.
The agreement reportedly completes the company’s disposal programme launched on 27 August 2020 to raise proceeds of at least £2 billion.
The finance from the deal is set to help rebuild Rolls Royce’s balance sheet to support its ambition to return to an investment grade credit profile in the medium term.
Rolls Royce commented ITP Aero would remain an important strategic supplier and partner for the car manufacturer across its Civil Aerospace and Defence programmes.