(Alliance News) - Rolls-Royce Holdings PLC on Friday confirmed it is in "early stages" of reviewing options to strengthen its balance sheet and recover the business following the Covid-19 pandemic.
The FTSE 100-listed company, which makes jet engines, has been hit hard by the virus outbreak as lockdowns around the world halted air travel, invariably affecting sales and service revenue of the company.
"Rolls-Royce notes the recent press speculation. We confirm we are in the early stages of reviewing a range of potential options to strengthen our balance sheet and position ourselves for the recovery following Covid-19. However, no decisions have been made. Our current financial position and liquidity remain strong," the company said in a short statement Friday.
Shares in Rolls-Royce were down 8.3% at 268.10 pence each in London on Friday afternoon. Year-to-date, the stock has shed 61% in value.
Rolls-Royce's customers comprise of more than 400 airlines and leasing customers, 160 armed forces, 70 navies, and more than 5,000 power and nuclear customers. In 2019, the company recorded underlying revenue of GBP15.3 billion, around half of which came from the provision of aftermarket services.
Bloomberg News, citing people familiar with the fundraising plans, reported on Friday that Rolls-Royce was hoping to raise between GBP1.5 billion to GBP2 billion potentially via an equity offering.
The company is also evaluating options of divesting certain assets, with the ITP Aero unit one of the potential sale targets, the news agency reported.
https://www.bloomberg.com/news/articles/2020-07-03/rolls-royce-is-said-to-weigh-fundraising-options-amid-downturn
By Tapan Panchal; tapanpanchal@alliancenews.com
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