Melrose Industries, an engineering company that seeks to acquire businesses it understands, improve them by a mixture of investment and changed management focus, realise the value created and then return it to shareholders. I have a holding in my income portfolio (epic code: MRO).
Melrose Industries announced today that it has signed an agreement
for the disposal of Bridon to the Ontario Teachers' Pension Plan. The total
consideration of £365m on a debt and cash free basis is payable in cash on
completion and management have stated that they currently intend to use the proceeds to pay down
existing borrowings and to finance a return of capital in due course.
This follows on from the return of capital announced in January and completed in March of this year that totaled £600m ( see here ). I would assume it would follow the same principles as the earlier return of capital.
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