Melrose Industries Plans Restructuring to Return GBP2 Billion-GBP2.5 Billion to Holders
06 October 2015 - 6:04PM
Dow Jones News
By Alex MacDonald
LONDON--Melrose Industries PLC (MRO.LN) said Tuesday it intends
to implement a corporate reorganization to efficiently return GBP2
billion ($3 billion) to GBP2.5 billion of proceeds from the
disposal of energy and water meter business Elster Group GmbH to
shareholders.
The reorganization will involve the creation of a new holding
company which won't alter the number of shares held by Melrose
shareholders, but will help distribute the proceeds from the
disposal more efficiently.
Honeywell International Inc. (HON), a maker of aircraft parts
and climate control systems, agreed in July to buy energy and water
meter business Elster Group GmbH from Melrose for GBP3.3 billion
($5 billion) in cash. The purchase is forecast to close in the
first quarter of next year.
Melrose at the time said it intended to use the proceeds to
return over GBP2 billion to shareholders and use the remainder of
what wasn't given to shareholders for general corporate purposes,
including paying down existing debt.
Melrose shareholders are due to vote on the new structure on
Oct. 29.
-Write to Alex MacDonald at alex.macdonald@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
October 06, 2015 02:49 ET (06:49 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
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