Explosive growth for Chemring

By PERRY GOURLEY
Published on 18/08/2012 00:00

SHARES in military equipment maker Chemring soared yesterday after it said it had received a preliminary expression of interest from private equity firm Carlyle Group.

Chemring, which has a major explosives equipment site at Stevenston in Ayrshire, declined to comment further on the approach and whether it was considering it.

Chemring shares have fallen 21 per cent so far this year leading to speculation last month that larger American rival General Dynamics may be plotting a bid.

Under takeover rules, Carlyle has until 14 September to either make a firm bid for Chemring or walk away. Shares in the target firm closed up 101.3p, or 32.3 per cent, at 414.7p.