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A FTSE-100 company with a narrow bid-offer spread. Manufactures and supplies components and vehicle
structures to automotive, aerospace, mining and agricultural industries. Approximately 39,000 people work
in GKN companies and joint ventures in more than 30 countries

GKN corporate website - GKN investors website - Company history


(previous thread title no longer relevant, hence new thread)

StockMarketWire.com
GKN said Tuesday that it has a clear and comprehensive plan to reduce its pension liabilities, calling Melrose's recent warning of overburdened pension liabilities 'misleading.'

GKN said 'Melrose has not to date agreed any meaningful short-term actions to reduce the existing scheme liabilities.' The firm added that as part of the transaction with Dana, it will transfer £1,375m of gross pension and post-retirement medical scheme liabilities and £818 million of pre-tax deficit.

This comes in the wake of Melrose Industries formal proposal to inject up to £1bn into GKN's pension fund. Melrose on Monday warned GKN's shareholders that they would end up with shares in an Aerospace business overburdened with up to £3 billion of pension liabilities should they reject the takeover offer of GKN.

The firm said, however, that Melrose's £1bn plan would 'achieve less than GKN's own agreement with the Trustees, at a greater cash cost which would erode shareholder value,' and added that its shareholders 'deserve better.'

Commenting, GKN Group Finance Director, Jos Sclater, said: 'GKN has a clear and comprehensive plan to reduce its pension liabilities and eliminate the deficit in its UK pension schemes. We have a binding agreement with the Trustees which works for all stakeholders: the scheme members, the Trustees and the company and its shareholders.'

'A month ago, Melrose appeared to suggest that its plan to pay £150 million into the pension scheme was sufficient. Now it appears to have unveiled a £1 billion plan that would achieve less than GKN's own agreement with the Trustees, at a greater cash cost which would erode shareholder value. I think our shareholders deserve better.'

StockMarketWire.com
GKN said Dana on Monday increased its offer for GKN's Driveline business by $140m (£100m) to $1.77bn.

Under the terms of the deal, GKN will now receive $1.77bn in cash after deducting $1.0bn for the transfer of pension deficit to the combined Dana-GKN Driveline group.

GKN shareholders will continue to own 47.25% of the combined company listed on both the NYSE and LSE.

The firm said it intends to return up to £700m of cash to shareholders as soon as practicable following completion of the Dana-GKN Driveline transaction.

GKN reiterated that Melrose's final offer fundamentally undervalues the company and urged shareholders to reject the final offer as 'the true value of GKN is over £5 per share.'

GKN also confirmed that statements of shareholder support in respect of GKN published in The Sunday Telegraph and Sunday Times on March 25, were not verified and are therefore retracted.

The Sunday Telegraph article contained a comment by Anne Stevens, Chief Executive, that "Stevens says... she's convinced investors will back [GKN]." The Sunday Times article contained a comment by Jos Sclater, Group Finance Director, that "long-only shareholders are mostly supportive of existing management, and understand that the Dana deal and becoming a pure play aerospace company has, longer term, significantly more value than the Melrose bid."

Mike Turner, Chairman of GKN said: 'I welcome Dana's announcement today. This transaction, which along with Project Boost was initiated prior to the Melrose bid, offers by far the best strategic route forward for GKN Driveline. The challenges and opportunities of electrification mean that consolidation is required. By moving now, the Dana-GKN Driveline combination will be strongly positioned to be a global leader in this field.'

'For GKN, we believe this combination comes at an ideal time in the wider automotive cycle and, with this increase, what was already an excellent deal for both parties has just become an even better one for our shareholders. We believe that Melrose would find it extremely difficult to create equivalent value in the future from GKN Driveline if its offer were to be successful.'

it must surely be wrong for this t/o by melrose to be permitted

as i understand it, GKN is of strategic importance to uk, and there is no question but that melrose are solely after an asset-stripping exercise

Compulsory Acquisition of remaining GKN Shares 27.04.18
Melrose announces that it has now acquired, unconditionally contracted to acquire or received valid acceptances of the Offer in respect of more than 90 per cent. of the value of the GKN Shares to which the Offer relates and more than 90 per cent. of the voting rights carried by such shares. Accordingly, Melrose will now begin the implementation of the compulsory acquisition procedure under Chapter 3 of Part 28 of the Companies Act 2006 (the "Act") to acquire the remaining GKN Shares which it does not already own or has not already acquired, contracted to acquire or in respect of which it has not already received valid acceptances, as contemplated by the Offer Document.

GKN de-lists today 21.05.18