Simon Peckham, chief executive, said that it had taken a conservative approach with the payout given the uncertain trading backdrop, but would consider another significant payment next year if conditions improve.
“Both the Automotive and Powder Metallurgy Divisions have seen recovery in the automotive sector, albeit currently tempered by the impact of the global semi-conductor shortage,” he said.
“While it remains too early to state with certainty, there are also some encouraging signs for the Aerospace Division that the start of a recovery for that sector is in sight.”
Melrose noted it had also completed the sale of Brush last week for a net £100mln, which was the last business of the 2008 FKI acquisition.
The proposed return of capital will be accompanied by a share consolidation both of which will require shareholder approval at a general meeting plus court approval.
Subject to those approvals, shareholders will receive one B2 Share, with a nominal value of 15p, for every ordinary share held on the record date for entitlement.