Melrose Industries Share Discussion Threads

[davius] 19/4/2023 14:22

The FTSE generally reviews constituents quarterly (March, June, September, December).

I have no knowledge of what happens short term due to a demerger, but my expectation is that Melrose will remain in the FTSE 100 until the next review at the end of June, when it will drop to the 250. Dowlais will then join the FTSE 100 at the same time.

I assume Dowlais will be in the all share index for the interim.

But all speculation on my part, it could, as someone else suggested, be added to the 100 immediately.

[mayers] 19/4/2023 14:06

Thank you Davius.

[typo56] 19/4/2023 12:15

I see some poeple are asking about the FTSE 100.

From tomorrow (20th April) both Melrose and demerged Dowlais will be in the FTSE 100. Whether they still qualify for entry will depend on their market caps at close tomorrow.

FTSE will then announce what company will be removed from the FTSE 100. It could be Melrose? If not then BLND or JMAT? This will take effect from open next Tuesday (25th April).

I think this means we'll have to endure three trading days with 101 constituents. Odd, but it happens.

[jamtin] 19/4/2023 11:30

I've held Melrose for 15 years, it was one of my purchases in my first ever self-managed ISA.

Have sold out today. I may buy back into one or both of the split companies at a later date, but need to see how their respective strategies play out first.

In the meantime I can have no complaints about what the BOD have delivered for me as a shareholder over the past decade and a half.

[davius] 19/4/2023 09:46

Melrose has a market cap of £6.6bn. At the bottom of the FTSE 100 is British Land at £3.6bn. Dowlais will likely enter the FTSE 100 with a cap of £4.4bn, Melrose will drop to the FTSE 250, assuming there's little change in the overall market cap after the demerger.

[mayers] 18/4/2023 21:04

Surprisingly quiet here today, the day before the demerger. Davius' helpful contribution echoes the information from my broker but I still did not feel I knew enough to make an assessment as to how much Melrose had invigorated GKN and not holding a large amount I did not want to be saddled with small holdings. Having made a 45% profit I therefore sold. I am impressed by the observation that neither of the demerger companies will qualify as FTSE100 members.
Perhaps a more erudite contributor can enlighten me.

[davius] 17/4/2023 09:25

Ho hum, well it pays to look at your account before making a post... It's happening rather more quickly than implied!

Just received a corporate action re my Melrose shares via my II account. It states the following:



Consolidation and Demerger

Effective date: After the close of business 19th April 2023

Terms: 1 new share in Melrose Industries plc and 1 new share in Dowlais Group plc in exchange for every 3 existing Melrose Industries plc shares held

Pay date: 20th April 2023

Melrose Industries plc has announced a Consolidation and Demerger effective after the close of business on the 19th April 2023.

Under the terms of the events, holders will be issued with 1 new share in Melrose Industries plc and 1 new share in Dowlais Group plc in exchange for every 3 existing Melrose Industries plc shares held.

The new shares will be issued to entitled shareholders upon receipt from the company.

Your account will be updated upon receipt of the proceeds but in some circumstances there may be delays in the proceeds being credited to us. Please allow 10 working days for your account to be updated.

[davius] 17/4/2023 09:16

9degrees, Melrose plan to demerge two of the GKN businesses into a new company called Dowlais. This received shareholder approval, with the intention to complete the demerger by Q2/Q3.

According to their presentation from last year, the remaining part of Melrose will be about 1/3 of the original company, with turnover of £2.77bn and EBITDA of £327m, the new automotive company Dowlais will be the other 2/3 with turnover of £4.86bn and EBITDA of £592m.

The presentation also states "Proposed separation by way of a demerger of new ordinary shares in DemergerCo directly to Melrose shareholders" so shareholders will receive Dowlais shares on completion of the demerger.

(They used "DemergerCo" prior to calling it "Dowlais")

[9degrees] 13/4/2023 14:49

ca someone explain to me what the deal on offer is ?

[1justine] 06/4/2023 12:45

More wild swings in market price for MRO. Pressing issue is will the demerged Melrose and Dowlais stay in the FTSE-100? Exit of one or both will hurt. Has MRO Board said anything on this during the demerger process? Communication with the MRO small shareholder not a strength.

[gettingrichslow] 01/4/2023 00:25

Yes, Jackdaw! Up over 50% tonight in the US!

[jackdaw4243] 28/3/2023 18:23

Anyone interested in BUR these days ???

[jackdaw4243] 16/3/2023 16:34

1Just
He was working for Nero I think.

[gettingrichslow] 14/3/2023 23:22

They’ve demonstrated time and time again that they are worth every penny. It may have escaped your attention that there was a pandemic that rather affected business performance over the last few years?

[1justine] 13/3/2023 16:07

Petronius Arbiter, a Roman official, famously said that reorganising is a wonderful method for creating the illusion of progress while actually producing confusion, inefficiency and demoralization. On the MRO reorganisation the Executive Directors will apparently be trousering multi millions, and this despite the awful share price performance since the GKN acquisition ( for which they also trousered millions).

[darrin1471] 08/3/2023 12:47

"UT" is auction
The 5,208,948 trade was in the closing auction
There is a good LSE video here:

[jackdaw4243] 07/3/2023 17:01

A 5 million sale went through at close of business under "UT" anyone any idea what that is ??

[jackdaw4243] 02/3/2023 10:21

These results must have been priced in.

[blackhorse23] 02/3/2023 08:11

Switched to CURY

[rettah] 01/3/2023 16:02

Someone posted the below on the LSE chat:

Manufacturing buyout group Melrose is splitting but the opportunities in the two demerged divisions are not recognised, says Peel Hunt.

Analyst Harry Philips retained his ‘buy’ recommendation and increased his target price from 195p to 204p on the stock, which lifted 3.4%, or 4.9p, to 147.4p yesterday.

The business plans to demerge its automotive and powder metallurgy arm – which will be known as Dowlais – from its aerospace division.

Philip predicted earnings of £575m will be delivered in aerospace by 2026 versus £180m in 2022, and ‘we believe this is conservative moving into recovery’.

Dowlais earnings are forecast at £560m in 2026 versus £330m in 2022, which Philips said is ‘realistic and potentially cautious’.

‘We increase our target price from 195p to 204p as we retest our sense check of putting the target margins onto 2024 estimated revenue,’ he said.

‘The improvement opportunity in aerospace is understated, while the resilience in the growth of Dowlais is under-recognised. The parts are worth more than the whole.’

[jackdaw4243] 01/3/2023 15:52

My RR have taken off can MRO do the same.

Airbus have an order book for over 7400 aircraft according to the I C. Will any of that come MRO way ??

[sliotar] 20/1/2023 11:02

What will we hold after the split here -- one Ftse 100 member and one Fuse 250 member or two Fuse 250 members -- either way an immediate knock from all or part coming out of 100 Index. No visibility problem in current structure for potential buyers to see the individual businesses available in the portfolio. Management preoccupied with the split and how they come out of it when they should be totally focussed on the SELL bit of their Buy - Fix- Sell- mantra and make us some money.

[netcurtains] 19/1/2023 08:09

Yep the Trading update sounds good and later presentations

[rettah] 19/1/2023 07:25

Decent update. The supply constraints in the Automotive industry are easing as well now which should be good going forward.