19th Apr 2018 10:09
LONDON (Alliance News) - FTSE 250-listed Melrose Industries PLC on Thursday said its offer for GKN PLC is now unconditional, as its directors join GKN's board in place of its old leadership.
The industrial turnaround specialist said it has so far received valid acceptances of 1.46 billion GKN shares, some 85% of its total shareholders, and both companies recommend the rest accept the offer.
Leaving GKN's board on Thursday are Chairman Michael Turner, Chief Executive Anne Stevens, Finance Director Jos Sclater, as well as five other board members.
Melrose Executive Chairman Christopher Miller, Executive Vice-Chairman David Roper, and Chief Executive Simon Peckham have taken charge of GKN, as has Finance Director Geoffrey Martin.
Melrose said its early stage review of GKN confirmed the opportunities to improve the business, and on Tuesday next week it will give an update on GKN's trading from January to March.
GKN shares are expected to de-list by May 21.
Outgoing GKN Chairman Turner said: "The board of GKN thanks shareholders for their support over the course of the bid, but we now strongly advise those who have not yet tendered their shares
into the Melrose offer to do so."
Miller said: "Today sees the formation of a new manufacturing powerhouse, headquartered in the UK and with diverse operations around the world. Each of these operations has enormous potential and under Melrose ownership we know we can help them fulfil that potential.
"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."
"We are pleased to make binding commitments to the UK and other governments around the world about our commitment to GKN and to national security. We look forward to working closely with those governments as a responsible supplier and corporate citizen," Miller added.
This was Melrose's only nod to national security concerns which had hovered over the takeover.
The Financial Times on Thursday reported the UK government is set to wave through the deal as early as next week, not referring it to regulators, after concluding it does not represent a national security concern.
The newspaper said Melrose is expected to be requested to give further guarantees on GKN's future defence work before a formal decision is made.
https://www.ft.com/content/16233702-4324-11e8-803a-295c97e6fd0b
GKN shares were up 1.1% Thursday at 481.00 pence each, with Melrose shares up 0.8% at 236.80p.