Member Article

Melrose PLC in possible Elster takeover

Melrose PLC has confirmed that it is in discussions with the Board of Elster Group SE regarding a cash offer for the entire issued share capital of Elster.

Due diligence is currently on-going, and the Alcester-based manufacturing buyout firm have indicated that it would not proceed with the transaction without a recommendation from the Board of Elster.

In a statement, the company said any transaction would be funded through a combination of new debt and a fully underwritten rights issue to existing Melrose shareholders.

Elster is an engineering company, and one of the world’s largest providers of gas, electricity and water meters, gas utilisation products and related communications, networking and software solutions.

The company, which is incorporated in Germany and listed on the New York Stock Exchange, generated revenues of $1,869m in 2011.

This was posted in Bdaily's Members' News section by Tom Keighley .