Aerojet Rocketdyne (NYSE:AJRD) stock is on the rise Monday following news that Lockheed Martin (NYSE:LMT) is acquiring the company.
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Here’s everything that investors in AJRD stock need to know about the deal.
- The offer from Lockheed Martin has a total value of $5 billion.
- This will have it paying $56 in cash for each share of AJRD stock.
- That represents a 33% premium over the stock’s closing price on Friday.
- It’s also a 42% premium to the volume-weighted average stock price from the last 90 days of trade.
- To go along with this offer, Aerojet Rocketdyne is also paying a special dividend of $5 per share of holders of AJRD stock or convertible senior notes.
- This dividend is payable March 24, 2021, to holders on record as of March 10, 2021.
- So long as the dividend isn’t revoked, this adjusts the offer from Lockheed Martin to $51 per share.
- The deal still needs to complete customary closing conditions before it’s done.
- That includes getting approval from shareholders of AJRD stock.
- So long as there are no issues, the two companies are expecting the deal to close in the second half of 2021.
- When this happens, a transition team will be created for a smooth integration into Lockheed Martin.
Eileen Drake, president and CEO of Aerojet, said the following about the deal.
“We are pleased to bring together our complementary companies in a transformative transaction that will provide premium cash value for our shareholders and tremendous benefits for our employees, customers and partners.”
AJRD stock was up 22.4% as of Monday morning.
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.
