Rolls-Royce to Sell Stake in Mini-Nuclear Power Stations Business

Rolls-Royce (LON: RR.) is considering selling a share in its mini-nuclear power stations venture, according to a report from the Sunday Telegraph. The company is considering a “range of options.”

The FTSE 100 engineering giant is said to be in talks with potential investors to raise additional funds for its Small Modular Reactors (SMRs) project, with cash set to run out by early next year.

The company has already attracted significant interest from multiple investors keen on acquiring a stake in the venture, the Sunday Telegraph reported.

Rolls-Royce is reportedly seeking fresh capital to bolster its SMR business after a previous fundraising round in 2021 secured £195 million.

Despite this, the company's CEO, Tufan Erginbilgic, expressed confidence in the funding process, describing the SMR project as an “attractive proposition” with a promising future.

The Sunday Telegraph quoted him as saying that several investors recognize the venture's potential.

The report says that Rolls-Royce is being advised by BNP Paribas and has received approaches “across the board,” including from infrastructure investors, hedge funds, clean energy funds and other nuclear power companies.

When asked about funding, Erginbilgic is said to have told The Sunday Telegraph that he was “very comfortable”.

He reportedly added: “I won't go into specific deals. But obviously our SMR is an attractive proposition and it's got a great future and some investors potentially recognise that.”

Rolls-Royce SMR has already amassed nearly £500 million in funding from various sources, including private investors and government grants.

Notable backers include US utilities Constellation and Exelon Generation, family office BNF Resources, and the Qatar Investment Authority.

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