Share Name Share Symbol Market Type Share ISIN Share Description
Melrose Industries LSE:MRO London Ordinary Share GB00BZ1G4322 ORDS 48/7P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  -3.10p -1.33% 229.80p 228.90p 229.00p 239.10p 228.50p 235.00p 10,941,043 16:35:20
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Industrial Engineering 889.3 -69.3 -2.6 - 4,460.88

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Date Time Title Posts
22/1/201817:53Melrose PLC with Charts and News1,962
15/2/201709:06rights issue28
03/7/201016:28Melrose Predator turned Prey ?14

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Melrose (MRO) Most Recent Trades

Trade Time Trade Price Trade Size Trade Value Trade Type
2018-01-22 17:13:12230.17625,5141,439,725.56O
2018-01-22 16:53:25230.058391,930.12O
2018-01-22 16:53:08230.309,87822,749.03O
2018-01-22 16:52:52231.301330.07O
2018-01-22 16:52:30230.14172395.84O
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Melrose Daily Update: Melrose Industries is listed in the Industrial Engineering sector of the London Stock Exchange with ticker MRO. The last closing price for Melrose was 232.90p.
Melrose Industries has a 4 week average price of 207.40p and a 12 week average price of 194.70p.
The 1 year high share price is 261.90p while the 1 year low share price is currently 194.70p.
There are currently 1,941,200,503 shares in issue and the average daily traded volume is 21,104,553 shares. The market capitalisation of Melrose Industries is £4,460,878,755.89.
grevis: Melrose Industries went hostile in its £7.4bn takeover offer for engineering group GKN after meeting with the target's shareholders. GKN shareholders would be offered 1.49 new Melrose Shares and 81p in cash for each GKN share. The offer now valued the shares at 430.1p, up from a previous value of 405p, Melrose said "Since our approach was announced, the Melrose share price has risen as the market digests the attractive opportunity our proposal represents," Melrose chief executive Simon Peckham said. "As a result the implied premium has grown from approximately 24% to approximately 32% since our approach." "However, the real value uplift will come from merging the interests of the two sets of shareholders and creating a business valued at approximately £11 billion today, of which GKN holders will own the majority, including Nortek, our US business which is trading strongly."
meanwhile: I have a question relating to a particular scenario, an increasingly likely one. For the purposes of this question, I am proposing the scenario of an offer of around 460p (some competent observers have suggested this figure) being accepted by GKN shareholders and the offer terms are as the current 80% MRO shares, 20% cash. 92p cash, 368p in MRO shares. Does anyone have any thoughts or predictions of where the MRO price will go from here in the short term, that is in the period running up to acceptance of such a Melrose offer and new MRO shares being issued.? In such a scenario The GKN price will now most likely creep up steadily to around the 460p expected to be offered. Forget other bidders. But what about the MRO price. I think this is a tricky one. The higher the MRO price goes, the less new shares will need to be issued to GKN shareholders to cover their 368p and each new share will have more of the total business. For MRO holders, this would seem to be a driver for the MRO price to be urged to rise, by whatever means. On the other hand GKN shareholders would benefit from a fall in the MRO price because they will then get more new MRO shares for their 368p. Any thoughts on what/who will drive the MRO price?
dav1dc2: What on earth is happening to the share price?
meanwhile: Brace yourselves & be prepared. I've followed Melrose for around 12 years, making a fortune in the process. I've followed their business cycle of "buy & sell" through several full turns. However, I have seen for the first time, in their recent statements, a particular, and rather singular, message. This is, (in my words):- despite running their latest major acquisition for only 6 months, they are seeking a next acquisition -. Now I've no doubt that they have an acquisition searching team who are always engaged in doing this, but why announce that they are searching after only 6 months. They've never stated this before and they have no need to state this. However they have now in the annual results statement in March and again in the recent trading update. I think the reason is that they are close to making the next. If Nortek is going as well as it appears, they will have found that they have tapped into a new seam of opportunities, namely in the USA, in construction industries & in fitting & servicing. As would be expected in such finds, they can't wait to capitalise. Shareholder rewards from a new rights issue won't be anything like the bonanza with Nortek but I expect will be well worth taking. Of, course, you must appreciate that I could be completely wrong. As usual, some will think I'm trying to talk up the share price in my own mind - False. I have made a great deal of money from Melrose over the years and, as an alternative to giving to you some of this money, I am giving good, soundly-based advice from my many years experience of this company. I'm keeping the money to myself because I've not yet reached the position of a gross excess, which I submit is quite enough for anyone. Finally, Is anyone prepared to guess the offer price of the next Rights Issue. I am offering 3 prizes for the closest estimate. Prize 1. An interview with the BBC's Nick Robinson. Prize 2. An evening, dinner date with Angela Rippon. Prize 3. Entry to a 3 hour lecture from Dan Snow on the Battle of Sebastopol. Yours Faithfully, Meanwhile
grevis: Melrose Industries bosses to land £200m-plus share bonanza The quartet of executives who run Melrose are likely to be handed shares worth more than £150m, Sky News learns. 15:17, UK, Sunday 19 March 2017 LONDON STOCK EXCHANGE Melrose management team to share windfall By Mark Kleinman, City Editor Top executives at one of Britain's best-performing industrial groups are close to landing a share bonanza worth more than £200m, placing it among the largest one-off payouts ever made by a FTSE-100 company. Sky News has learnt that the management team of Melrose Industries, which specialises in turning around underperforming engineering businesses, could receive in the region of £206m from an incentive scheme due to pay out in the next few months. The details, which will be disclosed in Melrose's annual report‎ next month, relate to a five-year bonus scheme approved by the company's shareholders in 2012. Melrose, which owns manufacturing names such as Brush and Nortek, has generated billions of pounds of profit for its investors since it was set up more than a decade ago. Sources said that an accounting note in Melrose's recent annual results, which disclosed a £22.8m charge for employers' National Insurance‎ contributions, hinted at the scale of the potential share scheme payout. ‎One insider said the current 40-day average share price of about 210p would equate to a total award to Melrose's top team of £206m, although the final figure had yet to be determined this weekend. A number of top shareholders in Melrose contacted by Sky News said they were comfortable with the size of the payout. "We signed up to this knowing the scale of the upside for management," said one. "They only make money if we do." Melrose's top team is led by chairman Christopher Miller, deputy chairman David Roper, Simon Peckham, the chief executive, and chief financial officer Geoff Martin. Between them, the four men are expected to receive roughly 75% of the aggregate payout, which is calculated by handing participants in the bonus plan 7.5% of the total shareholder gain. A further 20 senior managers would share the remainder of the multimillion pound rewards under the scheme. Melrose has sold companies including metering business Elster and Bridon, an industrial cable-maker, during the last few years. The share bonanza will come amid growing scrutiny of boardroom pay at the UK's top companies, with Theresa May vowing last year to crack down on corporate excess. Ministers are starting to formulate responses to a green paper published in the autumn, while a report on corporate governance and executive pay is expected to be published by the Department for Business, Energy and Industrial Strategy shortly. While some companies, such as Thomas Cook and Imperial Brands, have faced revolts over much smaller management incentives than those at Melrose, the industrial turnaround group has generally enjoyed strong support from its shareholders. Since its inception, Melrose has returned roughly £3.2bn to investors by selling a string of companies for big profits. A person close to Melrose pointed out that its executives' pay was strongly aligned to shareholder returns and that its chief executive's basic salary was £450,000 - well below the average for a company with a market value of more than £4bn. This year's share scheme will be the second to crystallise at Melrose since the company was established. In 2012, executives shared a £126m windfall under the previous incentive plan. The company's management team have never sold shares other than to settle tax liabilities, and will be obliged to hold onto half of the latest‎ share awards for at least two years. Melrose, which declined to comment, will seek shareholder approval for a further incentive scheme at its annual meeting later this year.
meanwhile: I may face criticism for making such a comment, but I will defy this suggestion. Panmure Gordon believe MRO can treble the value of the Nortek takeover price, and this was, I recall, 40% over Nortek's market price pre-bid. Even Numis, who have long been neutral on MRO, are now saying only rather less than Panmure. What I find surprising therefore, is that such potential (if present) was not seen by other potential bidders at the time of the takeover. You will recall that no rival bid came in for Nortek. Either MRO have vision beyond all others or such optimism as shown by the broker targets, and by the share price itself, are misplaced. As a shareholder, I hope the former is true. MRO's record over 10 years suggests this also. Next week, we should know. Maybe Panmure will see that the value can not just be trebled, but septupled or even octupled.
meanwhile: I've invested in MRO since 2006, with major returns. I've held little else since 2010 and will continue to hold most of my money in this company. However, I would guard against expecting too much from the share price in the short term, say 1-2 years. All investors who subscribed to the new shares have already seen a gain of over 100% since July/August, 5X the 22% quoted by bigalan3. MRO paid a 40% premium to the NASDAQ quoted value for Nortek and the 95p new issued shares (to pay for Nortek) has more than doubled since, now almost £2. This means that the value of Nortek is currently rated on the LSE at around 3 times the NASDAQ value before acquisition. We all expect MRO to increase the value of Nortek several-fold, but a 3-fold increase may already be in the price. Having made these cautious observations, I am expecting Nortek to be more than just a buy>improve>sell. I am expecting it to be a nucleus for further acquisitions and am holding for more new shares.
bashfish: what is the mechanism for paying to take up rights? i initially received an amount of MRON equivalent to the value lost when the MRO price was readjusted from ~700 to ~150, i didnt specifically request these MRON or do anything other than be holding MRO when the price was changed. i actually bought £1000 additional MRON after receiving my initial load. apart from that i didnt do anything with the MRON
meanwhile: MRO almost at 360p now. The rise, not spectacular, seems almost relentless. So why the rise and how far could it go? It's unlikely to be Brush; so it's likely to be speculation around the next acquisition. This itself is hardly a revelation, but you may wish to read on. An understanding of Logic is required. I've followed MRO for over 10 years and they have made me some money. I've no wish to drive up the share price now, (because I'll be keeping my shares well into the future), but I am pleased to share my positive view of possible future moves in the price, based on my experience with MRO. MRO's past acquisitions have invariably been a great success. The higher market has been slow to acknowledge this but I believe it's happening now. Their acquisitions, for which they paid market price (or sometimes seen as a little above), are now seen as having been cheap, at least to MRO. Cheap because of the potential for MRO to transform each business and, of course to MRO, they were always cheap. The next acquisition, if viewed in the same light as past acquisitions, I expect will now be seen by the market as a cheap deal for MRO. And it could be a big one. The current capitalisation of £500M might need to add £3B, possibly more. It could be financed in a variety of ways but a big rights issue is expected to be part of it. We could see, just as a guess, an offer of 3 new shares at £3 for each old share currently held. This could raise almost half the £3B. The rest could come from a placing. Now the main factor affecting the old MRO price at that point, is what the market saw that £3 raised being worth, when in MRO's hands and paying towards the acquisition. They could see it as a mediocre deal and see the £3 as still valued at £3, or even less if they saw it as a bad deal. But they could see it as a great deal for MRO, and see the £3 as being (in its new home) being worth £3.50p (50p premium) or more. Before the new shares were traded, that premium would go on the old shares, because they would carry the option to buy shares (re-valued at £3.50) for £3. At 3 for 1, the premium would be 3x 50p = £1.50 total. So where would the old shares trade then? My guess is that the next acquisition will be seen more widely by the market as a great deal for MRO.
meanwhile: Take a look at the 10 year MRO share price graph. There's no cycle to be seen there, just a relentless rise, a major downward blip with the banking crisis and a few small ones for various reasons which now appear insignificant. This one will join them.
Melrose share price data is direct from the London Stock Exchange
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