LONDON (dpa-AFX) - Melrose Plc (MRO.L) confirmed that it is in discussions with the Board of Elster Group SE (ELT) relating to a recommended cash offer for the entire issued share capital of Elster. Elster agreed to due diligence which is now on-going, and Melrose has said that it would not proceed with the transaction without a recommendation from Elster's board and a hard irrevocable undertaking from Elster's largest shareholder, Rembrandt Holdings S.A., which is owned by funds advised by CVC Capital Partners.
The company said any transaction would be funded via. a combination of new debt and a fully underwritten rights issue to existing Melrose shareholders. Melrose's board would only proceed with the transaction, if it meets Melrose's acquisition criteria, including the terms on which financing for the transaction can be raised.
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