Melrose on brink of Elster takeover

Engineering buy-out firm Melrose said it had secured almost all of the shares in its German take over target Elster Group.

The company said it had acquired over 99% of Elster shares in its tender offer and was giving remaining shareholders a further four business days to sell up.

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.

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This was 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.

"Having acquired over 95% of the total share capital of Elster in the initial tender offer, following the subsequent offering period, Melrose intends to implement a 'squeeze-out' of the remaining Elster shareholders," the firm said.

"Such squeeze-out process will be subject to German law and is expected to take a number of months to complete once initiated."