Melrose disposal

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.