Lockheed Martin Drops Buyout Offer for Terran Orbital
By Ben Glickman
Lockheed Martin has withdrawn an offer to acquire satellite maker Terran Orbital for nearly $300 million.
The defense contractor said in a regulatory filing Thursday it notified the company April 30 that it was withdrawing its non-binding proposal to acquire all of Terran's shares for $1 each in cash.
Lockheed Martin, which reported Thursday that it owned about 28% of Terran's shares, said it planned to review its investment in the company and may reconsider its position.
The offer, initially disclosed in early March, also provided for Lockheed Martin to pay $70 million for Terran's outstanding warrants. The offer of $1 a share was based on about 223 million common shares and dilutive stock-based compensation outstanding.
Lockheed uses Terran to build satellites for certain contracts, and made an investment in the company in 2017.
Since the initial offer was disclosed, shares in Terran Orbital have traded above the bid price. They closed Thursday at $1.29.
Terran has been looking for a potential buyer about a year and a half after going public, The Wall Street Journal reported in December.
Write to Ben Glickman at ben.glickman@wsj.com
(END) Dow Jones Newswires
May 02, 2024 17:33 ET (21:33 GMT)
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