Terran Orbital Shareholders Take Massive Hit In Lockheed Buyout: Details
Portfolio Pulse from Lekha Gupta
Terran Orbital Corporation (NYSE:LLAP) shares plummeted after announcing a buyout deal with Lockheed Martin Corporation (NYSE:LMT) for $450 million. Lockheed Martin will acquire Terran Orbital for $0.25 per share in cash and retire its existing debt. The transaction includes a new $30 million working capital facility and is expected to close in Q4 2024. Terran Orbital will continue to operate as a commercial supplier post-acquisition.
August 15, 2024 | 3:03 pm
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POSITIVE IMPACT
Lockheed Martin announced a $450 million acquisition of Terran Orbital, which will enhance its satellite capabilities. The deal includes a $30 million working capital facility and is expected to close in Q4 2024.
The acquisition will strengthen Lockheed Martin's satellite capabilities and secure its supply chain, which is positive for the company's long-term growth. The market is likely to view this acquisition favorably.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 80
NEGATIVE IMPACT
Terran Orbital shares dropped 40.6% following the announcement of a buyout deal with Lockheed Martin for $450 million. The acquisition price of $0.25 per share is significantly lower than the current trading price, leading to a sharp decline in stock value.
The buyout price of $0.25 per share is much lower than the current trading price, causing a significant drop in LLAP's stock value. Investors are reacting negatively to the perceived undervaluation.
CONFIDENCE 100
IMPORTANCE 100
RELEVANCE 100