RE: Rolls-Royce close to selling Spanish aircraft parts business to private equity groups22 Jun 2021 16:57
Casapinos, ITP had buyers since the announcement for sale. They are filtering out for the best buyer. In May, they had short listed 2 bidders out of 4. Bain capital is one of them and are certainly interested in buying. I believe the bidding process done to make sure that RR doesn't lose out with the sale. There will be agreements signed so that if bidder wants to back off then they may have to pay any loss incurred by RR with the sale.
Also RR is doing right thing by investing on Electric stuff. Currently ESG is the theme. Banks and funds are investing in the companies that have ESG in their portfolio. RR is doing lot of stuff with Electric aviation. Although 50% revenue is from flying hours but travel looks to be promising as each day goes by.
UK govt faced pressure about increasing capacity in Wembley stadium for EUROs and likewise they will face pressure to open up travel when EU countries are opening up travel. Planning is underway to allow vaccinated people to travel to Amber countries without quarantine.
RR need 66% of 2019 flying hours as the market liked when this was announced and I think RR will see more than that when full year reporting comes out next year.