Carlyle's deadline extended for firm offer for Chemring Group
13 Oct 2012
US private equity firm Carlyle Group has been given another month by the UK regulator to table a firm offer for UK defence equipment maker Chemring Group Plc or walk away.
With the deadline expiring yesterday, the UK takeover panel has extended until 9 November the so called ''put up or shut up'' deadline for Carlyle to table a firm bid for Chemring. It was the second time that the panel has extended the deadline.
On 17 August, Chemring said that it has received "a highly preliminary expression of interest" from Carlyle, which sent its stock surging by 32 per cent amid takeover speculation, valuing the Hampshire, UK-based company at £810.7 million ($1.28 billion).
Washington D C-based Carlyle, the world's biggest PE firm by assets, had until 14 September to either make a firm bid or pull out, as per the UK takeover panel code.
Chemring, which manufactures and sells energetic material products and counter-measures for the defence, security and safety markets, was recently speculated to be a prime takeover target after it posted a 50 per cent decline in pretax profit for the six months to 30 April.
Last month Carlyle asked for an extension to the deadline to make a firm bid for Chemring.
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