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Melrose reaches 90pc acceptance, begins compulsory acquisition of remaining GKN shares
Melrose announced on Friday that it has now acquired, unconditionally contracted to acquire, or received valid acceptances, of its offer for GKN in respect of more than 90% of the value of the GKN shares to which the offer related, and more than 90% of the voting rights carried by such shares.
The FTSE 100 firm said that as a result, it would now begin the implementation of the compulsory acquisition procedure to acquire the remaining GKN shares which it did not already own or has not already acquired, contracted to acquire or for which it has not already received valid acceptances, as contemplated by the offer document.
"Melrose will shortly despatch formal compulsory acquisition notices to GKN shareholders who have not yet accepted the offer," the company's directors said in its statement.
"These notices will set out Melrose's intention to apply the provisions of section 979 of the Companies Act to compulsorily acquire any remaining GKN Shares in respect of which the offer has not been accepted, on the same terms as the offer."
Melrose said it expected that such outstanding GKN shares would be compulsorily acquired by Melrose, on the same terms as the offer, on or shortly after a date six weeks from the date of the compulsory acquisition notices.
"The consideration to which those remaining shareholders will be entitled will be held by, or on behalf of, GKN on trust for those shareholders who have not accepted the offer, and they will be requested to claim their consideration by writing to GKN at the end of the six week period."