Rolls-Royce shareholders approve two billion pound rights issue

[October 27, 2020]   LONDON (Reuters) - Shareholders in Britain's Rolls-Royce <RR.L> approved the aero-engine maker's 2 billion pound rights issue on Tuesday, injecting cash into the battered business to shore up its finances after the pandemic stopped planes flying.

A man looks at Rolls Royce's Trent Engine displayed at the Singapore Airshow in Singapore February 11, 2020. REUTERS/Edgar Su

The approval of the capital raise boosts the group's total liquidity by 5 billion pounds by unlocking extra debt options for Rolls, including 2 billion pounds from a bond issue and an extra 1 billion pounds from a two-year loan.

"The single resolution is passed overwhelmingly," chairman Ian Davis told an online meeting.

Investors are backing CEO Warren East's plan to help the company ride out COVID-19 by cutting 9,000 jobs and closing factories to adjust to a lower demand from airline customers that fly with Rolls engines on Boeing 787s and Airbus 350s.

The formal results of the meeting will be published later on Tuesday.

(Reporting by Sarah Young, Editing by Paul Sandle)

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