3rd Feb 2015 07:49
LONDON (Alliance News) - Melrose Industries PLC Tuesday confirmed it will return GBP200 million, or 18.7 pence a share, to its shareholders, using part of the net proceeds it received when it sold its Bridon business for GBP365 million.
The company had already indicated it would return some of the proceeds to its investors, using the rest to pay down borrowings.
Its shareholders will get one B share or one C share for every existing share they hold, as well as 13 new shares for every 14 existing shares in an associated share capital consolidation.
"Realising value in our businesses and returning all or part of this value to shareholders is a fundamental part of the Melrose "buy, improve, sell" strategy," Melrose Chairman Christopher Miller said in a statement.
Shareholder can choose how they get the payout. Under an income option, they'll get one C share for each existing share and a dividend of 18.7 pence per C share. Under a capital option, they'll get one B share for each existing share, which will then be redeemed by Melrose on March 2 for 18.7 pence per B share.
By Steve McGrath; [email protected]; @stevemcgrath1
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