Rolls-Royce appoints activist stakeholder to board
The US activist investor built up a stake in the British engineer, following a string of profit warnings last year.
Rolls-Royce chairman, Ian Davis, said the appointment of Bradley Singer would not change the group’s strategy, but would bring experience from an executive who has worked with public companies that are in periods of change.
“This appointment will not trigger a particular strategic review,” Mr Davis said.
“There are no changes to our plan to maintain the broad structure of the company,” he said.
ValueAct’s Mr Singer joins Britain’s flagship engineering company at a time of turmoil.
Profits at the world’s second-largest maker of aircraft engines are set to halve this year, having dropped 16% in 2015 on tough trading in its civil aerospace unit, and as its marine-engine business suffered from declining demand from oil and gas customers.
Shares in the company have fallen by 44% since its peak, in January, 2014.
Media reports have suggested ValueAct could pressure the company to sell its marine-engine unit, but Warren East, who became CEO of Rolls in July last year, in a bid to steady the group, has told Reuters that the investor backs his plans.
