Current Price –LMT $255.75, LDOS $50.25;
Offer Price – $1.11 stock of LDOS for $1 stock of LMT (subject to upper limit of 8.2136 LDOS ex-dividend shares per share of LMT);
Upside – 11% or $2700 for Odd Lot holders;
Expiration date – August 16, 2016;
Odd Lot holders of LMT (less than 100 shares) are not subject to proration;
Important items to consider:
- Final exchange ratio will be determined close to the expiration of the offer (valuation dates are 9th to 11th of August 2016), therefore final payoff/loss might differ from the indicated one and depending on how shares move in the meantime this transaction might even result in losses for investors. On 11th of August the exchange ratio will already be known, so one might wait till then for the trade.
- LMT will announce quarterly results on 19th of July.
- LDOS will announce quarterly results on 28th of July.
- Before consummation of the transaction LDOS will pay special dividend to existing shareholders of $13.64. The exchange will be calculated excluding this dividend payment
- This deal is more risky than the standard odd lot tenders usually posted on this site. Do your own due diligence before investing.
For each $100 in value of your Lockheed Martin common stock accepted in this exchange offer, you will receive approximately $111 in value of Splitco common stock. The value of the Lockheed Martin common stock will be based on the calculated per-share value for the Lockheed Martin common stock on the NYSE and the value of the Splitco common stock will be based on the value for Leidos common stock on the NYSE (because each share of Splitco common stock will be exchanged for one share of Leidos common stock in the Merger), in each case determined by reference to the simple arithmetic average of the Daily VWAP on each of the Valuation Dates (9th to 11th of August of 2016). In the case of Splitco common stock, the value will be reduced by $13.64 per share, which equals the per-share amount of the Leidos Special Dividend. Please note, however, that the number of shares you can receive is subject to an upper limit of an aggregate of 8.2136 shares of Splitco common stock for each share of Lockheed Martin common stock accepted in this exchange offer.
No proration for Odd Lot holders:
Beneficial holders of “odd-lots” – that is, fewer than 100 shares of Lockheed Martin common stock, whether held in registered form or through a broker or other nominee – who validly tender all of their shares and request preferential treatment will not be subject to proration if this exchange offer is oversubscribed.