REG - Melrose Industries - Share Buyback Programme

Melrose IndustriesAnnouncement

08/06/2022 07:00

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RNS Number : 0711O  Melrose Industries PLC  08 June 2022

8 June 2022

 

MELROSE INDUSTRIES PLC ("MELROSE" OR THE "COMPANY")

 

COMMENCEMENT OF £500 MILLION SHARE BUYBACK PROGRAMME

 

As part of its 2021 preliminary results announcement on 3 March, the Company
announced it was keeping an intended capital return under review despite a
strong performance during the year, citing world events and market
uncertainty.

 

With the announcement of the sale of Ergotron, the GKN Aerospace Capital
Markets Event to be held later today and the Company's ongoing strong
financial position, your Board is satisfied that it has sufficient certainty
in order to commence a programme (the "Programme") to make market purchases of
existing ordinary shares of 160/21 pence each in the capital of the Company
("Ordinary Shares") subject to the limits in this announcement.

 

In accordance with the Company's general authority to repurchase Ordinary
Shares granted by its shareholders at the Annual General Meeting held on 5 May
2022 (the "General Authority"), the Programme will purchase no more than
437,242,947 Ordinary Shares and up to a maximum aggregate consideration
payable by the Company of £500 million.  The Programme will commence
tomorrow, 9 June 2022, and will end no later than 31 October 2022.

 

The purpose of the Programme is to reduce the Company's share capital and it
is intended that Ordinary Shares purchased shall be cancelled. Any purchases
of Ordinary Shares by Melrose in relation to the Programme will be conducted
in accordance with the General Authority, any further approvals to purchase
shares as may be granted by its shareholders from time to time, the Market
Abuse Regulation 596/2014 as it forms part of domestic law by virtue of
section 3 of the European Union (Withdrawal) Act 2018 (as amended), and
Chapter 12 of the Listing Rules.

 

The Company has entered into irrevocable, non-discretionary instructions with
Investec Bank plc ("Investec") and J.P. Morgan Securities plc (which conducts
its UK investment banking business as JP Morgan Cazenove, "JP Morgan
Cazenove") to conduct the Programme on its behalf and to make trading
decisions under the Programme independently of Melrose.  The Programme will
not impact the Company's existing Ordinary Share dividend policy, which will
continue unaffected through the regular awards of interim and final dividends.

 

Simon Peckham, Chief Executive of Melrose, today said:

"Having agreed the sale of Ergotron, we are now in a position to again
distribute capital to our shareholders and have chosen the quickest way to
start to achieve that goal.  We will continue to keep under review the
appropriate capital structure of Melrose as we position for continuing
success."

Enquiries:

 Investor Relations:                                                            +44 (0) 7974 974 690
 ir@melroseplc.net (mailto:ir@melroseplc.net)
 Montfort Communications - Financial PR:                                        +44 (0) 20 3514 0897
 Nick Miles miles@montfort.london (mailto:miles@montfort.london)                +44 (0) 7739 701 634
 Charlotte McMullen mcmullen@montfort.london (mailto:mcmullen@montfort.london)  +44 (0) 7921 881 800
 Investec - Corporate Broker:                                                   +44 (0) 20 7597 5970
 Carlton Nelson
 JP Morgan Cazenove - Corporate Broker:                                         +44 (0) 20 7986 4000
 Robert Constant

 

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