21st Dec 2015 17:11
LONDON (Alliance News) - Melrose Industries PLC Monday confirmed plans to return GBP2.4 billion to shareholders, equivalent to 240 pence per share, after the sale of its Elster Group business was cleared by the European Commission.
The company agreed to sell the Elster energy-metering business to US industrial conglomerate Honeywell for GBP3.3 billion in cash. The company operates a "buy, improve, sell" model, under which it acquires underperforming companies, returns them to health and then sells them on.
It had said in October it planned to return between GBP2.0 billion and GBP2.5 billion following the sale. It will announce further details in due course after the sale is completed.
Shares in Melrose Industries closed up 0.8% at 287.05 pence Monday.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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