The offer includes a cash offer equivalent to the issued share capital of Elster calculated at @20.50 per American Depository Share.

Both parties have agreed to the on-going due diligence process as well as there is an agreement that Melrose would wait for a recommendation from the Board of Elster before proceeding with the transaction.

Melrose will also seek an undertaking from Elster’s largest shareholder Rembrandt. The agreement between the two parties will require Rembrandt, which is owned by CVC Capital Partners to transfer its complete stake to Melrose.

Currently the evaluation proposal is being studied by the Board of Elster to evaluate whether it fits the best interests of Elster which is major provider of electricity, gas and water measurement and control systems and its shareholders.