Rolls-Royce company to issue $2.58 billion in shares
British corporation Rolls-Royce plans to issue shares worth 2.58 billion dollars. The papers will be placed among the existing shareholders in order to strengthen the financial position of the company and to minimize the consequences of the pandemic.
A total of 6.44 billion shares will be issued, the value of which will be 32 pence for one piece. In addition, the papers are subject to a discount to their market price – 130 pence. Shareholders of the car manufacturer will be able to purchase 10 new shares for each of the three units they already own.
In addition, the company plans to issue bonds for a total of 1 billion pounds.
Rolls-Royce will also be provided with a loan of 1 billion pounds for 2 years. Export Credit Agency has agreed to increase the amount of the loan for 5 years, which was previously taken by the company.
According to representatives of Rolls-Royce, such measures will allow keeping existing processes at the right level and survive the stagnation associated with the pandemic. According to the forecasts of analysts of the corporation, the increase in income is expected in 2022.
Rolls-Royce Company was created as a result of joining efforts of two businessmen – Charles Rolls and Henry Royce. People belonged to different strata of the population, but became partners.
Charles Rolls grew up in an aristocratic family, received 2 higher educations, and after studying he founded a company that imported cars.
Henry Royce was not lucky, and he grew up in poverty, worked from a small age, but did not forget about his studies. Despite the fact that he only finished one class at school, the young man was interested in mathematics and electronics, which allowed him at the age of 16 to become an engineer. After gaining experience there and having accumulated some money, Henry opened a workshop. Immediately he produced three machines, which were of high quality, but without original technical solutions.
In 1904, young people met after Charles Rolls had read in local newspapers about the new cars and their inventor. Then, the aristocrat invited Royce as an engineer to jointly develop a brand new car.
The first model was presented in 1906, it was distinguished by a powerful frame, an engine of 7 liters with 6 cylinders, which were installed in a row. The company positioned itself as a manufacturer of reliable machines, and for this reason Rolls-Royce products were quickly admired by the public. Until the end of the 1950s, the brand was actively developing and referred to the manufacturers of premium products. The Phantom cars were driven by members of the royal family, and even the Great Depression and war years did not affect the success of the company.