Turnaround specialist Melrose (MRO)’s demerger of its automotive and powder metallurgy arms into a new entity known as Dowlais is set to complete by 20 April, if shareholders agree to terms at a meeting later this month.
The company is proposing to first consolidate its share base, offering one new Melrose share for each three currently held. It will then grant holders one Dowlais share for each new Melrose share. This is being done “to enable the post-demerger share price of both Melrose and Dowlais to initiate at sensible levels”, it said in a circular published last week.