Bain Capital's $1.39 Billion Offer for Chemring Lifts Shares
U.S. private equity giant Bain Capital has made a £1.1 billion ($1.39 billion) takeover bid for defense contractor Chemring Group (CHG.L), Sky News reported on Monday. The news sent Chemring's shares soaring by over 16% on the London Stock Exchange.
Bain Capital's offer of 390 pence per share represents a premium of nearly 9% to Chemring's closing price on Friday. By 12:18 GMT, Chemring's shares had jumped by 13.7% to 407 pence.
Both Chemring and Bain Capital have declined to comment on the proposal. Sources close to the situation have indicated that Bain Capital may have prepared a second offer for Chemring, but it is unclear whether this has been formally submitted to the defense contractor's board.
Chemring specializes in the production of naval anti-ship missile defense systems and other defense products.
