Britain's Rolls Royce to pay back USD1.70b to investors

(MENAFN) Shares of the Britain-based Rolls-Royce boosted by 7 percent yesterday after it decided to buy back USD1.69 billion shares, according to Oman Observer. The company is expected to return to earnings growth in 2015, trying to bring back investors' confidence after it was shaken by a cut in profit guidance in February. The buyback, which is about 5 percent of the Rolls-Royce's USD32.32 billion market capitalization, will be funded partly by proceeds from the USD1,335 million disposal of its gas turbine unit to German conglomerate Siemens AG , agreed in May. Chief Executive John Rishton said: "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."