(Reuters) – U.S. private equity firm Bain Capital has tabled a 1.1-billion-pound ($1.39 billion) proposal to buy Chemring Group, Sky News reported on Monday, sending shares of the London-listed defence contractor up more than 16%.
The 390 pence per share bid is at a premium of nearly 9% to the stock’s close on Friday. Shares rose 13.7% to 407 pence by 1218 GMT.
Chemring and Bain declined to comment.
Bain had also prepared a second offer for Chemring, but it was unclear whether it had submitted that bid to the defence contractor’s board, the report added, citing one source close to the situation.
Chemring makes naval anti-ship missile defence systems and other products.
($1 = 0.7915 pounds)
(Reporting by Yamini Kalia in Bengaluru; Editing by Shilpi Majumdar and Leroy Leo)
