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Combined GKN Driveline-Dana business would have London listing
Further to its announcement on 9 March about the proposed combination of Dana Incorporated and GKN Driveline, Dana announced on Monday that the new combined business will hold a standard listing on the London Stock Exchange, in addition to being listed on the New York Stock Exchange.
The company said the combined group would bring together "two great companies", creating a US and UK-led global leader in vehicle drive systems and electric propulsion that was "well-suited" to address the long-term demands of global customers, and was expected to deliver $235m (£170m) in synergies.
Through a standard listing on the London Stock Exchange, it said more GKN shareholders would be able to benefit from the "significant" value creation that was expected from the combined group.
"Since announcing the deal to bring GKN Driveline and Dana together, I have had the opportunity to speak to many of our shareholders and explain why I am so excited about this prospect," said GKN chief executive Anne Stevens.
"The complementary nature of the two businesses and our shared commitment to research and development and long term investment creates a fantastic opportunity to build a world leading company and create meaningful shareholder value by delivering $235m in synergies.
"The listing on the London Stock Exchange will make it possible for more of our shareholders to participate in the expected value creation opportunity from the combined Dana and GKN Driveline business."
Turnaround specialist Melrose, which has been fighting a war of words with the GKN board for some time as it tries to woo shareholders to accept its offer for the whole company, was quick to deride the plan on Monday morning, reminding investors of the looming deadline for acceptance.