15th Jul 2016 06:38
LONDON (Alliance News) - Melrose Industries PLC on Friday said all the anti-trust conditions concerning the proposed USD1.44 billion acquisition of US manufacturing firm Nortek Inc have been satisfied after regulatory approval was secured in the US.
Melrose struck a deal to acquire Nortek earlier this month, 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
Melrose operates a business model by which is acquires underperforming industrial businesses, restructures and returns them to health, and then sells them on.
Melrose plans to pay USD86.00 per share for Nortek, a 38% premium to Nortek's closing price in New York the day before the deal was unveiled, and shareholders of Nortek have already shown substantial support.
Melrose anticipates the Nortek deal will be significantly accretive to headline earnings in the first year after purchase and thereafter.
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.
A general meeting of Melrose shareholders to vote on approving the deal will be held on July 25.
By Joshua Warner; [email protected]; @JoshAlliance
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