Rolls-Royce shareholders approve two billion pound rights issue

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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 (NYSE:BA) 787s and Airbus 350s.

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

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