Lockheed Martin Announces Final Proration Factor of Approximately 8.05 Percent for Shares Tendered in Exchange Offer for IT and Technical Services Businesses
OREANDA-NEWS. August 23, 2016. Lockheed Martin (NYSE: LMT) announced today a final proration factor of approximately 8.05 percent for its exchange offer for shares of Lockheed Martin common stock in connection with the transaction to separate its Information Systems & Global Solutions (IS&GS) business segment and merge it with a subsidiary of Leidos Holdings, Inc. (“Leidos”), which successfully closed on August 16, 2016.
Exchange Offer Final Results
Based on the final count by the exchange agent, a total of 95,518,064 shares of Lockheed Martin common stock were validly tendered and not properly withdrawn in the exchange offer, including 1,825,646 shares tendered by stockholders who qualified for and elected odd-lot treatment. Stockholders who elected odd-lot treatment were not subject to proration, and their shares were fully accepted in the exchange offer. All remaining tendered shares of Lockheed Martin common stock were accepted in the exchange offer on a pro rata basis using the final proration factor of approximately 8.05 percent. Shares of Lockheed Martin common stock that were validly tendered but not accepted for exchange will be returned to tendering stockholders.
Lockheed Martin offered to exchange all 76,958,918 shares of common stock of Abacus Innovations Corporation (“Abacus”) for shares of Lockheed Martin common stock accepted in the exchange offer. Following the closing of the exchange offer, each share of Abacus common stock was converted into one share of Leidos common stock. As a result, Lockheed Martin stockholders who tendered their shares of Lockheed Martin common stock in the exchange offer received approximately 8.2136 shares of Leidos common stock (subject to receipt of cash in lieu of fractional shares) for each share of Lockheed Martin common stock accepted for exchange. Lockheed Martin was able to accept the maximum of 9,369,694 shares of Lockheed Martin common stock for exchange in the exchange offer.
About Lockheed Martin
Headquartered in Bethesda, Maryland, Lockheed Martin is a global security and aerospace company that employs approximately 98,000 people worldwide and is principally engaged in the research, design, development, manufacture, integration and sustainment of advanced technology systems, products and services.