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Aerojet News: 11 Things for AJRD Stock Investors to Know About the Lockheed News

Aerojet Rocketdyne (NYSE:AJRD) stock is on the rise Monday following news that Lockheed Martin (NYSE:LMT) is acquiring the company.

Image of the Aerojet Rocketdyne logo on a smartphone sitting on a table.

Source: Piotr Swat / Shutterstock.com

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.

Article printed from InvestorPlace Media, https://investorplace.com/2020/12/aerojet-news-11-things-for-ajrd-stock-investors-to-know-about-the-lockheed-news/.

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