Aerojet Rocketdyne Shares Rally After Lockheed Takeover Deal
21 December 2020 - 10:47PM
Dow Jones News
By Robb M. Stewart
Aerojet Rocketdyne Holdings Inc. shares are poised to rally when
the market opens Monday after Lockheed Martin Corp. announced plans
to buy the space and missile-defense specialist in a deal valued at
about $5 billion.
In premarket trading, Aerojet's shares were 28% higher after
ending last week at $42.04, down 7.9% year-to-date.
Lockheed Martin has offered $56 a share for Aerojet, the company
said Sunday. The price would fall to $51 at closing following the
payment of a $5 cash dividend scheduled for March, reducing the
cash cost of the deal to $4.4 billion. That marks a 42% premium to
the weighted-average price over the last 90 days.
California-based Aerojet Rocketdyne has about 5,000 employees
and last year recorded revenue of almost $2 billion. The deal has
been unanimously approved by each company's board and is expected
to close in the second half of next year, subject to regulatory and
shareholder approval.
Write to Robb M. Stewart at robb.stewart@wsj.com
(END) Dow Jones Newswires
December 21, 2020 06:32 ET (11:32 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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