Melrose Industries completed the acquisition of GKN for £8.1bn

Melrose Industries, a London-based company that specialises in buying and improving underperforming businesses, completed the acquisition of GKN, a British multinational automotive and aerospace components company headquartered in Redditch, Worcestershire. Under the terms of Final Offer, GKN shareholders received: 81 pence in cash for each GKN Share held and 1.69 New Melrose Shares. In addition, GKN Shareholders on the register on 6 April 2018 will be entitled to receive the final dividend of 6.2 pence per GKN share as announced by the GKN Board on 27 February 2018. Based on Melrose’s Closing Price of 224.7 pence per Melrose Share on 9 March 2018, the final offer, together with the announced dividend: values each GKN Share at 467 pence; values the entire issued and to be issued ordinary share capital of GKN at approximately £8.1bn. Offer represents an attractive immediate premium of approximately 43% to the Closing Price of 326.3 pence per GKN Share on 5 January 2018 (being the last Business Day prior to the approach made by Melrose to the GKN Board in connection with the Offer). "Since our approach was announced, the Melrose share price has risen as the market digests the attractive opportunity our proposal represents. As a result the implied premium has grown from approximately 24% to approximately 32% since our approach. However, the real value uplift will come from merging the interests of the two sets of shareholders and creating a business valued at approximately £11bn today, of which GKN holders will own the majority, including Nortek, our US business which is trading strongly. We are having discussions with shareholders about the potential for the merged business, which will be one of the largest companies in the UK," Simon Peckham, Melrose CEO.