Rolls-Royce Holdings Plc (LON:RR) has agreed to sell part of its marine business, the British engine maker has said. The company expects to land £12.6 million from the sale.

Rolls-Royce’s share price has lost ground in today’s session, having shed 1.14 percent to 1,042.00p as of 09:48 BST. The shares are slightly underperforming the broader market, with the benchmark FTSE 100 index currently standing 0.70 percent lower at 7,054.53 points.

The blue-chip engine maker announced in a statement this morning that it intends to sell its Michell Bearings business to British Engines Limited for a cash consideration of £12.6 million, with proceeds from the sale to be utilised for working capital requirements. Rolls-Royce noted that the consideration was subject to the value of cash generated by Michell Bearings until the sale completes in the autumn.

Rolls-Royce’s Michell Bearings unit, part of the group’s marine business, is a designer and manufacturer of hydrodynamic bearings for a wide range of marine and industrial applications. Commenting on the disposal, Mikael Makinen, Rolls-Royce’s President for Marine, said that the agreement would allow the company “to concentrate on the core areas of our Marine business where we can add most value”.

The news of the sale comes after last week the UK engine maker announced a change at the top, with its chief executive John Rishton to be replaced by Warren East, a former chief executive of ARM Holdings (LON:ARM), in July. Rishton’s decision to step down comes after a difficult year for Rolls-Royce which saw the engine maker’s underlying revenue fall for the first time in a decade. The FTSE 100 company is scheduled to update investors on its recent performance on May 8.

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