14th May 2007 07:02
Melrose PLC14 May 2007 Melrose PLC For immediate release 14 May 2007 Melrose PLC Completion of the disposal of McKechnie Aerospace Further to the announcement on 23 March 2007, Melrose PLC ("Melrose") announcesthe completion of the disposal of McKechnie Aerospace to a company controlled byinvestment funds managed by JLL Partners for US$850 million plus the assumptionof US$5.6 million of indebtedness. Clearance has been obtained from the Pensions Regulator for the disposal and theproposed return of capital to Melrose shareholders. Pursuant to this Melrose hasagreed with the trustees of the McKechnie Pension Plan ("the Plan") to guaranteethe ongoing funding of the Plan. Together with certain of its subsidiariesMelrose will make a combined payment of £20 million into the Plan on completionand will make further payments totalling £18.3 million (plus PPF levy andadministration costs) by the end of April 2010. These payments are as set out inthe circular to Melrose shareholders dated 13 April 2007 and are calculated toeliminate the Plan's deficit in Melrose's 2006 annual accounts. It remains the intention of the Melrose board to return approximately £200million to shareholders and it is anticipated that the circular requestingshareholder approval will be sent to shareholders in due course. EnquiriesM: Communications 020 7153 1530James Hill This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Melrose