British aerospace company Rolls-Royce announced on Monday that it has agreed to sell its Spanish unit ITP Aero to a consortium led by Bain Capital Private Equity for €1.7bn ($2bn). The transaction will help Rolls-Royce meet its £2bn asset disposal target and comes just over a week after it announced a sale of its 23.1% stake in UK military refueling jet owner AirTanker Holdings for £189mn ($261mn). News of the transaction was well received by investors as its stock rallied 11% to GBP 148. Its bonds inched up as well with its USD 5.75% 2027s up 0.25 points to 110.75 yielding 3.67%. Investor confidence in Rolls-Royce is likely to grow as the company announced on the same day that it beat competitors to win a contract worth $2.6bn to supply the US B-52 bombers with replacement engines.
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