Melrose says £8bn GKN offer is “unconditional in all respects” as the engineering giant’s board resigns
Industrial turnaround firm Melrose has declared its £8.1bn offer for GKN is now “unconditional in all respects” as the entire board of the more than 250-year-old firm resigned.
“Today sees the formation of a new manufacturing powerhouse, headquartered in the UK and with diverse operations around the world,” said Melrose chairman Christopher Miller.
Melrose thanked the board members for their commitment to GKN and said it will update the market on GKN’s trading for the 13 weeks to March on 24 April. This will be followed by a “comprehensive review” of GKN’s performance in early September, alongside Melrose’s interim results.
Read more: Butt out of Melrose’s GKN takeover, MPs told
Earlier today, Melrose said 2.5bn new shares were admitted to trading on the London Stock Exchange’s main market for 1.5bn GKN shares received as of 12pm on 18 April, representing nearly 85 per cent of voting rights of the engineering giant.
GKN is expected to be removed from the London Stock Exchange on or around 21 May.
Miller said GKN has “enormous potential” that will be fulfilled under Melrose’s ownership.
“Every time we have acquired a company, we have found talented and dedicated people at all levels of the business who have been enthusiastic about change. This will be the case at GKN: The knowledge and vision of the GKN teams will find full focus under Melrose and together we will transform the prospects of the business as Melrose has done with all our previous acquisitions,” he said.
Melrose’s shares were traidng 1.28 per cent higher at 238p at the time of writing.
Read more: Melrose sets the date for GKN’s London share cancellation