Melrose reaches final threshold for GKN merger

Thursday, 19. April 2018 10:21

Melrose Industries Plc declared on Thursday its merger offer, under which current owners of GKN Inc. would gain control over 60% of its shares, became "unconditional in all respects." Approval was won with 84.97% of votes of the ailing British engineering company, the statement revealed. The cash portion of the deal will be settled or dispatched on May 3 at the latest for existing acceptances, said the company, which promised performance improvement upon the transaction.

Remaining GKN's stockholders were urged by Melrose to accept the offer. The preliminary review's results were in line with the estimated potential for a turnaround, the investment firm said and reiterated its intention to conduct "operational improvements, investment... and a fundamental change in culture." Delisting is expected by May 21, according to the update.

The Financial Times reported earlier, quoting unnamed people in the room, that the government of the United Kingdom is looking to approve the transaction next week but that Melrose would be told to provide further guarantees for the defense-related operations of the maker of Spitfire.

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