Court clears Melrose on return of capital

WARWICKSHIRE-based Melrose Industries has been cleared by the court to return almost £2.5bn to its shareholders.

Trading in the company’s shares was suspended by the London Stock Exchange yesterday until legal clearance for the proposed return of capital was granted.

The £2.4bn return follows the Alcester group’s successful sale last year of its Elster business to Honeywell for £3.3bn. Elster is a world leader in measuring and improving the flow of natural gas, electricity and water.

Following the court ruling, Melrose shareholders have been issued with one B Share with a nominal value of 240p for every existing ordinary share held at the eligibility date on January 26.

Following court sanction of the scheme, the company’s B Shares have been cancelled and extinguished in return for a payment to each holder of B Shares of 240p per B Share, being the nominal value of the B Shares.

Melrose said cheques would be despatched or CREST accounts credited with the payment, as appropriate, on February 5, 2016.

The Share Capital Consolidation is expected to become effective and dealings in the new shares are expected to begin at 8am today (Thursday).