Melrose sets the date for GKN's share cancellation after securing backing from more shareholders

 
Courtney Goldsmith
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GKN's shares are set to stop trading in May (Source: Getty)

Industrial turnaround specialist Melrose is set to cancel GKN's London-listed shares next month after investors approved a hostile £8bn takeover bid last month.

The firm said shareholders representing nearly 82 per cent of GKN had accepted its offer for the engineering giant as of yesterday, up from around 52 per cent at the time of the vote in March.

​Melrose expects GKN's shares to stop trading on the London Stock Exchange on or around 21 May following the offer becoming wholly conditional, which it said will happen no later than this Thursday.

"GKN shareholders who have not accepted the offer are urged to do so as soon as possible in accordance with the instructions set out in the final offer document," Melrose said.

Melrose won a long-running battle with the board of GKN, dubbed the "most bitter takeover battle in recent memory" by one analyst, despite pressure from MPs who were backing the British institution.

Following the announcement of Melrose's victory, business secretary Greg Clark said the government would launch a probe over whether the takeover would pose security concerns due to GKN's involvement in the manufacture of military aircraft.

The Institute of Economic Affairs hit out at MPs earlier this month, saying "there is nothing patriotic" about stopping shareholders of UK companies from deciding how to improve business performance.

Read more: Butt out of Melrose's GKN takeover, MPs told

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