Melrose Industries (LON:MRO) has moved closer to acquiring GKN (LON:GKN), having secured acceptances from more than 90 percent of shareholders for its hostile takeover bid. The news comes after the blue-chip engineering lost a months-long takeover battle with the turnaround specialist.
GKN’s share price has jumped in London in today’s trading, having added 1.25 percent to 462.00p as of 10:24 BST and outperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.45 percent higher at 7,455.05 points. Melrose’s share price meanwhile is 0.49 percent up at 226.10p, as compared with a 0.30-percent gain in the mid-cap FTSE 250 index.
Melrose closer to acquiring GKN
Melrose announced in a statement this morning that it had now acquired, unconditionally contracted to acquire or received valid acceptances of its offer of more than 90 percent of the value of GKN shares and more than 90 percent of the voting rights.
“Accordingly, Melrose will now begin the implementation of the compulsory acquisition procedure […] to acquire the remaining GKN shares which it does not already own,” the turnaround specialist pointed out in the statement, adding that it expected to compulsory acquire any outstanding GKN shares on or shortly after, the date that is six weeks from the date of the compulsory acquisition notices.
Melrose further urged GKN shareholders who have not accepted the offer to do so as soon as possible.
Today’s news comes after Melrose’s bid became unconditional earlier this month, while the board of GKN announced that it was stepping down. At the time, the turnaround specialist said that it expected GKN’s shares to be delisted from the London Stock Exchange on or around May 21 which it reiterated in today’s statement.