(Alliance News) - Aerospace company Chemring Group PLC on Thursday said it has obtained all regulatory approvals and completed the sale of US subsidiary Chemring Ordnance Inc for USD17 million in cash.
The unit was sold to Nammo Defense Systems Inc, a deal announced back in November 2019. The sale was subjected to regulatory approval as well as a working capital adjustment once the sale was complete.
With all regulatory approvals now obtained, the sale process is complete. The working capital adjustment is to be agreed within the next 60 days, but Chemring currently expects net proceeds of about USD15 million, which will be used "for general corporate purposes".
Shares in the Ramsey, England-headquartered firm were up 2.3% at 203.44 pence in London on Thursday morning.
By Anna Farley; annafarley@alliancenews.com
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Chemring (CHG)