Shares of Chemring Group Plc (CHG.L) rose about 8 percent on Friday morning in London, after the British military equipment maker announced the extension of deadline related to the takeover of the company by private equity firm Carlyle Group LP (CG: Quote). The deadline was to end on September 14.
At the request of Chemring, the Panel has consented to an extension of the deadline until 5.00 p.m. on October 12, 2012, to enable the companies to continue their on-going discussions.
It was on August 17, that Chemring received a preliminary expression of interest from Carlyle related to a possible offer for the company. As per rules, Carlyle was required to announce on September 14, its intention to make or not to make an offer.
Carlyle is a global alternative asset manager with $156 billion of assets under management across 99 funds and 63 fund of fund vehicles as of June 30.
However, Chemring said there is no certainty that an offer will be made at the end of this period. This extended deadline is also likely to be extended further with the consent of the Panel at its request, Chemring added.
In mid-June, Chemring had reported a decline in first-half profit. At that time, David Price, chief executive stated, "As expected, the Group's results for the first six months of the year were affected by the Continuing Resolution in the US and the US Government's delay in awarding the NIITEK $579 million multi-year support contract until the last day of the period."
CHG.L is currently trading at 351.4 pence, up 23.9 pence or 7.3 percent, on a volume of 702 thousand shares on the LSE.
CG closed Thursday's regular trading at $26.72 on the Nasdaq.
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by RTT Staff Writer
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