LONDON, June 19 – British aircraft engine maker Rolls Royce on Thursday outlined plans to return £1.0 billion ($1.7 billion, 1.25 billion euros) to investors via a share buyback after the sale of its energy production arm to Germany’s Siemens.
“Rolls Royce today committed to a share buyback of £1.0 billion subject to the completion of the sale of its energy gas turbine and compressor business to Siemens,” it said in a statement.
“The sale is expected to complete by the end of 2014.”
The British group had agreed last month to sell its energy assets to Siemens last month for 950 million euros ($1.3 billion).
“As no material acquisitions are planned, and reflecting the strength of our balance sheet, we will return the proceeds of the energy sale to our shareholders,” added Rolls Royce chief executive John Rishton in the statement.