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Melrose Still Sees H1 Trading In Line With Its View, Completes Nortek Air Mgmt. Sale

British manufacturing company Melrose Industries (MRO.L) Tuesday, ahead of its half year ending June 30, said it continues to trade in line with expectations and that it completed the sale of Nortek Air Management Division.

For the half year ending June 30, the Group said it is witnessing recovery in the automotive sector for both the Automotive and Powder Metallurgy Divisions, albeit currently tempered by the impact of the global semi-conductor shortage. The Group also anticipates some encouraging signs for the Aerospace Division, with a start of a recovery for that sector in sight.

Melrose said it completed the 2.62 billion pounds disposal of its Nortek Air Management Division to Madison Industries and the net proceeds from the sale will be used to fund the Proposed Return of Capital and for GKN UK defined benefit pension schemes.

The Group confirmed the proposed return of about 730 million pounds in cash to Shareholders, equivalent to 15 pence per Existing Ordinary Share. "The Proposed Return of Capital and Share Consolidation will require approval from Shareholders at a general meeting, together with a court hearing to confirm the requisite Reduction of Capital", Melrose said.

In addition, the Group also revealed the sale of Brush last week for a net cash proceeds of 100 million pounds. Brush is the final business to be sold from the FKI acquisition in 2008, the Group noted.

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