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GKN, which supplies parts to carmakers such as Volkswagen AG (OTC:VWAGY), aims to trade on the London Stock Exchange next year under a to-be-decided name, the newspaper said, citing people familiar with the matter. (https://on.ft.com/3KWlwBU)
Under the plan, turnaround specialist Melrose will separate GKN’s automotive and smaller powder metallurgy businesses from its aerospace arm through a demerger of shares, the FT report said.
Melrose and GKN Automotive did not immediately respond to a Reuters request for comment.
Melrose will retain ownership of GKN Aerospace, a supplier of airframe structures and engine components for aerospace and defence companies including Airbus and Rolls-Royce (OTC:RYCEY), according to the report.
The demerged auto group will account for about two-thirds of Melrose’s current projected revenue for 2022 of more than 7.5 billion pounds ($8.63 billion).
Liam Butterworth, the chief executive of GKN Automotive, is expected to become the head of the demerged business, with a separate chair to be appointed later, the report added.
Melrose acquired British engineer GKN in 2018 for $11 billion in a hostile bid. (https://reut.rs/3KWnpP0)
($1 = 0.8693 pounds)
