Melrose Industries PLC (LON:MRO) expects to take full ownership of GKN PLC (LON:GKN) in June and will announce plans for engineer at its half year results.
In an annual general meeting statement on Thursday, the turnaround specialist said now owns 94% of GKN after receiving acceptances from the engineer’s shareholders for its £8bn hostile takeover bid.
Melrose will provide further guidance on future plans for GKN at its interims in September.
The company has already made a series of binding commitments to the government by taking a long-term investment approach to GKN and keeping the company's headquarters in the UK.
The commitments came in response to opposition from trade unions and some politicians over concerns Melrose would asset strip GKN and put its contracts in UK defence in jeopardy.
READ: GKN's first quarter profits dragged lower by US aerospace unit before Melrose takeover
Melrose is reviewing its existing remuneration arrangements and expects to consult with shareholders in the coming months.
"We are very excited by what is in store for Melrose over the next few years,” said Melrose chairman Christopher Miller.
“We look forward to working with the GKN employees to transform the prospects of the businesses through significant investment.”
In March, Melrose declared a narrow victory in its battle to buy GKN after receiving valid acceptances for its offer representing approximately 52.43% of engineer’s voting rights.
READ: Melrose declares narrow victory in bitter battle to takeover GKN with acceptances of 52.43%
GKN had recommended shareholders vote against Melrose’s hostile bid and instead back its own plan to become a standalone aerospace engineer by selling off its other divisions – including Driveline to Dana Inc (NYSE:DAN).
Melrose updates the market on other businesses
Melrose also owns Nortek, which produces ventilation and security systems, and Brush, an investee company that produces generators.
In its AGM statement, Melrose said Nortek’s air management division expects to release new products over the next year and to see an improving order pipeline.
Melrose expects a foreign exchange headwind of 11% on Nortek’s 2018 results.
On Wednesday, Melrose announced that Nortek’s security and control business bought IntelliVision, which makes artificial intelligence analytics technology , for US435mln.
Meanwhile, Ergotron, bought by Melrose as part of its £2.2bn purchase of Nortek in 2016, is in the initial stages of being sold off.
A major restructuring of Brush, which struggled when oil prices hit the skids, is on time and on budget while trading remains unchanged, Melrose said.