Melrose makes £1.3bn Charter move
Buyout firm Melrose, which has major operations in Warwickshire, has made a preliminary approach to acquire Ireland-based Charter International for £1.3bn. Charter described the move as "unsolicited and opportunistic".
Charter owns several engineering businesses and is headquartered in Dublin.
Melrose, which specialises in acquiring underperforming industrial businesses, said it was looking at paying 780 pence per share for Charter. This represents a premium of 30 per cent over the closing share price on the day prior to the approach.
In a statement, Melrose said: "Any offer for Charter by Melrose, if made, would consist of a mix of cash and share consideration. However, Melrose would like to emphasise that there can be no certainty that an offer for Charter will be forthcoming."
Charter noted in a statement to the London Stock Exchange yesterday (29 June) that it had received a "highly preliminary, conditional and opportunistic approach from Melrose", which may or may not lead to an offer for the entire issued share capital of the company.
It added: "The board will meet to consider this unsolicited approach and a further announcement will be made in due course."
