Recent weakness in the share price (down 25% in Q122 to 117p) reflects investors’ macro concerns. MELROSE INDUSTRIES PLC value realisation occurs through disposing assets to vendors aware of the longer-term value. Edison Group expects disposals in 2022 (Ergotron and possibly GKN assets) to prove Melrose’s ‘buy, improve, sell’ model once more and support Edison’s valuation which remains 226p. Melrose Industries acquires underperforming industrial companies. It undertakes operational improvements through restructuring and investment before disposing of the assets.
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