Branding is seen outside the headquarters of GKN in Redditch, Britain, March 12, 2018. REUTERS/Hannah McKay
Sept 8 (Reuters) - Melrose Industries (MRON.L), the turnaround specialist that owns British engineer GKN, said on Thursday it intended to separate its GKN Automotive and GKN Powder Metallurgy divisions and list them as a separate independent business.
The Financial Times was the first to report late on Wednesday that Melrose plans to spin off the GKN automotive division - which supplies parts to carmakers such as Volkswagen AG - and smaller powder metallurgy businesses from its aerospace arm. read more
The demerged company will be an independent, London-headquartered group and will seek admission to listing on the premium segment of the Official List and to trading on the Main Market of the London Stock Exchange, FTSE 100-listed Melrose said.
Melrose bought British engineer GKN in 2018 for $11 billion after a three month battle to gain control of the firm.
Melrose said it would seek shareholder approval for the proposed demerger in the first half of 2023 and current chief executive and finance director of GKN Automotive, Liam Butterworth and Roberto Fioroni, will retain these roles on the board of the demerged company.
Melrose added it will retain ownership of GKN Aerospace, a supplier of airframe structures and engine components for aerospace and defence companies including Airbus (AIR.PA) and Rolls-Royce (RR.L).
Shares of London-listed Melrose were up 1% at 139 pence in early trade.
Melrose said its first-half results were at the higher end of expectations due to a strong recovery in aerospace.
Half-year adjusted pretax profit came in at 128 million pounds ($147 million) compared to a profit of 114 million pounds a year ago.
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