To pay 37.25 usd per share in Boeing common stock (Il Sole 24 Ore Radiocor) - New York, 01 Jul - US aircraft component maker Spirit AeroSystems said it has entered into a definitive agreement to be purchased by aerospace group Boeing in an all-share transaction with an equity value of 4.7 billion dollars and an enterprise value of 8.3 billion.

Earlier this year, fuselage panel supplied by Spirit blew out midair from a nearly new Boeing 737 Max 9 on an Alaska Airlines, raising concerns for Boeing.

Under the terms of the definitive merger agreement, Spirit shareholders will receive for each of their shares of Spirit common stock a number of shares of Boeing common stock equal to an exchange ratio calculated as 37.25 dollars divided by the volume weighted average share price (VWAP) of Boeing common stock over the 15-trading-day period ending on the second trading day prior to the closing, subject to a floor of 149.00 dollars per share of Boeing common stock and a ceiling of 206.94 dollars.

Spirit shareholders will receive 0.25 shares of Boeing common stock for each of their shares of Spirit common stock if the closing price is at or below 149.00 dollars, and 0.18 shares of Boeing common stock for each of their shares of Spirit common stock if the closing price is at or above 206.94 dollars.

The price of 37.25 dollars per share represents a 30% premium to Spirit's closing stock on February 29, 2024, the day before Spirit and Boeing issued press releases confirming they were in discussions regarding a potential transaction.

"After carefully evaluating Boeing's offer to combine, we are confident this transaction is in the best interest of Spirit and its shareholders, and will benefit Spirit's other stakeholders," said Patrick M. Shanahan, president and CEO of Spirit. "Bringing Spirit and Boeing together will enable greater integration of both companies' manufacturing and engineering capabilities, including safety and quality systems.".

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(RADIOCOR) 01-07-24 08:01:24 (0059) 5 NNNN