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11/28/2023, 9:23 AM (Source: TeleTrader)
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Rolls-Royce launches divestment program

Rolls-Royce Holdings plc shared on Tuesday in a statement that it is launching a "Group-wide divestment program," in an effort to reallocate capital to parts of the company where more value can be generated. However, the assets will only be sold "at the right time and at the right price."

"In Rolls-Royce Electrical we are looking at options to exit in the short run or alternatively for the right value, reduce our position to minority with an intention to exit fully in the mid-term," the company stated.

Rolls-Royce noted that it plans to make itself "financially stronger and more resilient" than it has been before. In the mid-term, its goal is to achieve an operating profit of £2.5 billion to £2.8 billion, a free cash flow of £2.8 billion to £3.1 billion, and a return on capital of between 16% and 18%.

Baha Breaking News (BBN) / AY