Rolls Royce bosses will be laughing their way to the bank this morning as they boost their profits with a huge $1.5bn deal.
Shares in the world’s second largest aircraft-engine maker jumped 6.5 per cent to 666.5p this morning.
The rise came after bosses revealed they were to sell its 32.5% stake in an aeroplane engine company.
Rolls will receive $1.5bn in cash when it sells its share in International Aero Engines (IAE), which produces the V2500 engine for the A320 Airbus.
The buyout comes from aircraft engine manufacturing giant Pratt & Whitney, who will also make further payments for every hour IAE engines are flown in the next 15 years.
Evolution Securities analyst Guy Brown said the deal would help Rolls Royce “drive profit delivery”.
But Rolls weren’t giving much away when asked what the cash would be spent on, saying it would be used for “general corporate purposes”.