Rolls-Royce Holdings Plc surged on a Sky report the British engine maker agreed to sell its ITP Aero unit to a group including Bain Capital for 1.5 billion pounds ($2.05 billion).
The deal with Bain and its partners, JB Capital and Spanish defense firm Sapa, could be announced as soon as Monday, Sky News reported. Shares of Rolls gained 10% to their highest intraday level since March 2020, at the start of the coronavirus crisis.
A sale of ITP would provide Rolls with much-needed cash to help it recover from the health crisis. The struggling company set itself a target to raise at least 2 billion pounds from disposals after seeing its finances hammered by the outbreak. Rolls said in August it was near an agreement for a sale of ITP.
Rolls-Royce couldn’t immediately be reached for comment.
©2021 Bloomberg L.P.