Rolls-Royce shareholders back £5bn warchest plan

Rolls-Royce has been backed by its shareholders to go ahead with a £2bn share issue programme that it says will eventually unlock a £5bn war chest.

Rolls, which has suffered badly because of the downturn in the aviation industry brought about by the Covid-19 pandemic, says the cash will be enought to see it through the crisis and ward off any fears of a liquidity squeeze.

The company said that 99.5% of shareholders backed the plan, which will see existing investors offered 10 new shares for every three they own at 32p each – representing a discount of more than 40%.

Earlier this year, the Derby manufacturer said it was making 9,000 people redundant across its global sites in a bid to save £1.3bn.