Terran Orbital, a prominent satellite manufacturer, is debunking recent rumors that the company is up for sale. In an all-hands meeting with staff, CEO Marc Bell emphasized that Terran Orbital is not actively seeking a buyer and intends to remain independent. Bell’s remarks were in response to a Wall Street Journal article claiming that the company was exploring bids for a potential sale.
Key Takeaway
Terran Orbital CEO, Marc Bell, refutes reports of the company being up for sale and asserts the goal to remain independent. Despite facing shareholder criticism and a looming delisting threat, Bell expresses confidence in the board’s direction and dismisses accusations as baseless. The company is open to strategic partnerships while reiterating the objective to keep the company independent.
Setting the Record Straight
Bell addressed the misleading report in an email sent to all employees, stating that the Wall Street Journal article was “very wrong.” He assured his team that their goal is to retain their independence and evolve into a reputable company. Bell sidestepped the suggestion of a potential sale, clarifying that the company is focused on becoming a Prime player in the industry.
Despite shareholder criticism and an investor group seeking Bell’s replacement and board reconstitution, Bell unequivocally expressed confidence in the board’s direction and management. He highlighted the significant ownership of the board and management, dismissing the accusations as baseless. To counter the shareholder criticism, Terran Orbital recently filed a lawsuit against one of the individuals in question, with plans to pursue further legal action against the entire group if necessary.
Commitment to Independence
During the staff meeting, Bell reiterated that Terran Orbital is not actively pursuing a buyer. However, he acknowledged the possibility of strategic partnerships with investors, similar to their collaboration with Lockheed Martin. Bell’s intention, should a take-private deal be proposed by the board, is to personally buy the company along with a business partner, demonstrating his commitment to maintaining independence despite any challenges.
It is worth noting that despite the CEO’s remarks, a regulatory filing submitted by Terran Orbital confirmed that the company is engaged in a formal review of strategic alternatives to enhance shareholder value. This review process may involve various options, including the potential sale of the company.
Following these developments, Terran Orbital’s stock price experienced a significant decline—falling approximately 25% from $1.03 to $0.77 per share. The company’s shares have been struggling to remain above the $1 threshold and risk delisting if the stock price fails to recover. This drop marks a sharp decline for Terran Orbital, considering its share price was trading at $10.96 shortly after going public in March of the previous year.
