Buyout firm Bain Capital has made a £1.1bn ($1.39bn) bid to acquire UK defence contractor Chemring Group, with shares in the London-listed business surging by over 16% on the news, according to a report by Reuters.
The proposed 390 pence per share offer represents a 9% premium to Chemring’s Friday closing price. Following the news, shares jumped 13.7% to 407 pence by 12:18 GMT.
In addition to the initial proposal, Bain had reportedly prepared a second offer, though it remains unclear whether this alternative bid was formally submitted to Chemring’s board, according to sources cited by Sky News.
Both Bain Capital and Chemring have declined to comment on the potential deal.
Chemring specialises in naval anti-ship missile defence systems and other high-tech defence products.
