8th Aug 2016 06:35
LONDON (Alliance News) - Melrose Industries PLC on Monday said the "window shop period" in regard to its reverse takeover proposal for Nortek Inc expired without Nortek having received a superior proposal.
As such, Melrose expects the deal to complete at the end of August and is now taking steps to implement its rights issue in relation to the deal.
Melrose struck the USD1.44 billion deal to acquire the US manufacturing firm in early July, backing the acquisition with a fully-underwritten rights issue of 12 new shares at 95.00 pence per share for each 1 existing share, raising a total of GBP1.61 billion.
Due to the size of the deal, the acquisition will constitute a reverse takeover, meaning Melrose's shares in the premium segment of London's Main Market will be cancelled after completion. Following this, Melrose will re-apply for a premium listing as soon as is practicable.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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