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(Alliance News) - Melrose Industries PLC on Wednesday said it will launch a GBP500 million buyback after earlier this week announcing the sale of the final asset belonging to 2016 acquisition Nortek Inc.
Melrose shares were 7.6% higher at 152.90 pence each in London on Wednesday morning, the best performing large-cap stock.
The industrial turnaround specialist said the GBP500 million programme kicks off tomorrow and will conclude no later than the end of October. All repurchased shares will be cancelled.
Melrose said it has "sufficient certainty" now to begin the repurchase programme.
The buyback announcement is slightly belated, however. In March, it had said it would leave the timing of a capital return "under review", following Russia's invasion of Ukraine.
It had planned to announce a "second capital return" in its March annual results. In June 2021, Melrose had unveiled a GBP730 million return to shareholders after completing the GBP2.62 billion disposal of its Nortek Air Management division to Chicago, Illinois-based Madison Industries LLC.
Melrose on Monday agreed a USD650 million deal to sell its Ergotron business to funds managed by Sterling Group. Ergotron, a manufacturer of ergonomic products such as computer mounts, stand-up desks, and mobile carts, belonged to Nortek, which Melrose bought in 2016.
By Eric Cunha; ericcunha@alliancenews.com
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