Melrose Industries proposes £200m cash return to shareholders

3rd Feb 2015 07:58

Manufacturing group Melrose Industries has proposed a £200m capital return and a share consolidation.After receiving £365m proceeds from the sale of its Bridon business, the FTSE 250 group said it intended to return 18.7p per share to shareholders, with the remainder used to pare down debt."Realising value in our businesses and returning all or part of this value to shareholders is a fundamental part of the Melrose 'buy, improve, sell' strategy," said chairman Christopher Miller.Shareholders have the choice as to how to receive the proceeds in the form of either income or capital.Melrose will also conduct a one-off consolidation of the number of its ordinary shares, on a ratio of 13 shares swapped for every 14.