Rolls-Royce Holdings Plc ended talks to raise 500 million pounds ($881.79 million) from sovereign funds in Singapore and Kuwait and will instead seek to raise 2 billion pounds from existing shareholders, Sky reported.
Current owners opposed the dilution that would occur bringing outside investors into the 2.5 billion-pound fundraising effort, the outlet reported, citing a person familiar with the matter.
The U.K. maker of aircraft engines is likely to unveil a financing package as soon as Thursday that also includes additional borrowing power, Sky said.
Rolls-Royce has lost more than 80% of its value this year, touching a fresh 17-year low on Wednesday amid a broad industry downturn triggered by the coronavirus pandemic.
The company has been particularly hard hit by the drop in long-distance travel, which has sharply curtailed demand for the wide-body planes its engines power. Many aircraft in the existing fleet have been temporarily or permanently grounded, depriving Rolls-Royce of vital maintenance revenue it collects when they fly.
Rolls-Royce has also seen its debt downgraded to junk this year, meaning borrowing would come at a higher cost than before the pandemic.
Sky News had earlier reported that Singapore’s GIC and Kuwait Investment Office were considering an investment in the engine maker.
