The starting gun has been fired on the tender offer through which engineering buy-out firm Melrose will take over German engineer Elster Group.
Under the previously announced agreed offer, Elster shareholders will receive $82 per ordinary share and Elster American depository shares (ADS) holders will receive $20.50 for every ADS, representing a premium of 48.6% to the price of an Elster ADS on June 11th, the last business day prior to press speculation that Rembrandt Holdings, Elster's majority shareholder, was considering a sale of its Elster holding.
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"We believe that Elster is an excellent fit with the Melrose acquisition criteria. Elster is a high quality business with strong end markets and the potential for significant development and improvement under Melrose management," Melrose's Chief Executive Simon Peckham has previously said.
Elster is one of the world's largest providers of gas, electricity and water meters, gas utilisation products and related communications, networking and software solutions.
Melrose already has 64.19% of the total share capital of Elster locked up through agreements with Rembrandt and senior figures within Elster.
The share price fell 1.6% to 362.40p by 14:57.
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