24th Apr 2014 11:24
LONDON (Alliance News) - Chemring Group PLC Thursday said it plans to sell its European munitions business, Mecar and Simmel, to French firm Nexter Systems SA for up to EUR167.8 million, so it can focus on its core defence technology business.
The British military equipment manufacturer said it would use a part of the proceeds from the disposal to repay its revolving credit.
"It not only enables us to strengthen our balance sheet through the reduction of net debt, but also provides us with flexibility to invest in our core technologies," said Chief Executive Officer Mark Papworth in a statement.
Chemring said the disposal is conditional upon the approval of its shareholders and regulatory approval in Italy.
Chemring shares were up 2.0% at 242.25 pence per share Thursday midday.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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