BOCA RATON, Fla. - Terran Orbital Corporation (NYSE: LLAP), a prominent player in satellite solutions for the aerospace and defense sectors, announced the adoption of a stockholder rights plan by its Board of Directors. This move comes in response to an unsolicited proposal from Lockheed Martin Corporation (NYSE:LMT) to purchase all outstanding shares of Terran Orbital's common stock for cash, which was proposed on March 1, 2024.
The rights plan, effective immediately, is designed to prevent any person or group from gaining control of the company through open market accumulation or other tactics without offering a fair control premium to all shareholders or allowing the board enough time to make informed decisions. The plan will be triggered if an entity acquires 15% or more of the company's common stock without board approval.
Terran Orbital's independent committee is set to evaluate Lockheed Martin's proposal and other strategic alternatives to maximize shareholder value. However, there is no certainty that any transaction with Lockheed Martin or another party will occur. The committee does not plan to provide updates unless it deems further disclosure necessary.
The rights issued under the plan will allow holders, excluding the acquiring entity, to purchase additional shares at a discounted rate if the ownership threshold is crossed. Stockholders of record as of the close of business on March 14, 2024, will receive one right per outstanding share of common stock.
The rights plan is set to expire on the first anniversary of its inception, with the possibility of an earlier termination by the board or an extension by stockholders for two additional years. Details of the plan will be disclosed in a forthcoming Form 8-K filing with the U.S. Securities and Exchange Commission.
Terran Orbital is recognized for providing comprehensive satellite services, including design, production, launch planning, and mission operations. The company's focus remains on meeting the stringent requirements of military, civil, and commercial customers.
This article is based on a press release statement, and it should be noted that forward-looking statements involved are subject to various risks and uncertainties, which could cause actual outcomes to differ materially from those projected.
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