Edition:
United Kingdom

GKN Rejects Buyout Proposal From Melrose, Appoints Anne Stevens As CEO


Friday, 12 Jan 2018 

Jan 12 (Reuters) - GKN Plc ::ANNOUNCES APPOINTMENT OF ANNE STEVENS AS CHIEF EXECUTIVE.‍CONFIRMS GROUP'S CURRENT TRADING​.OUTLINES A TRANSFORMATION PROGRAMME AND FUTURE GROUP STRUCTURE; AND REJECTS A PROPOSAL FROM MELROSE INDUSTRIES PLC.‍Q4 2017 TRADING WAS IN LINE WITH EXPECTATIONS AND GROUP THEREFORE CONTINUES TO EXPECT 2017 MANAGEMENT PROFIT BEFORE TAX((1)) TO BE SLIGHTLY AHEAD OF 2016​.‍GKN IS NOW CREATING DIFFERENTIATED PRODUCT SEGMENTS THAT WILL BE CLASSIFIED AS EITHER CORE OR NON-CORE​.CONFIRMS THAT ON 8 JANUARY 2018 IT RECEIVED A PRELIMINARY AND UNSOLICITED PROPOSAL FROM MELROSE TO ACQUIRE GKN.‍PROJECT BOOST IS A 2 YEAR PROGRAMME TO IMPROVE CASH AND PROFIT THAT WILL INCORPORATE ALL AREAS OF BUSINESS OPERATING SYSTEM INCLUDING CULTURE​.PROPOSAL AT A PRICE OF 405 PENCE PER SHARE, COMPRISING 80% IN NEW MELROSE SHARES AND 20% IN CASH.‍"PROPOSAL WOULD MATERIALLY DILUTE EXPOSURE OF GKN SHAREHOLDERS TO MEANINGFUL UPSIDE OPPORTUNITIES THAT BOARD BELIEVES ARE PRESENT WITHIN COMPANY"​.HAS CONSIDERED PROPOSAL TOGETHER WITH GLEACHER SHACKLOCK, J.P. MORGAN CAZENOVE AND UBS LIMITED, AND HAS UNANIMOUSLY REJECTED IT.