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WICHITA, KS – In a special meeting held today, Spirit AeroSystems Holdings, Inc. (NYSE:SPR) stockholders voted in favor of the company’s merger with Boeing’s subsidiary, Sphere Acquisition Corp. The company, currently valued at $4 billion in market capitalization, has seen its stock rise 27% over the past year despite challenging financial conditions.
This approval marks a significant step towards finalizing the merger, which is anticipated to be completed in mid-2025, subject to regulatory approvals and other customary closing conditions. According to InvestingPro analysis, Spirit AeroSystems currently operates with a significant debt burden of $5.14 billion, making this merger particularly crucial for its future.
The merger agreement, initially announced on June 30, 2024, entails Spirit AeroSystems becoming a wholly owned subsidiary of Boeing. The affirmative vote was cast by approximately 66.48% of the shares entitled to vote, achieving the necessary quorum.
While the company has demonstrated strong revenue growth of 16.62% in the last twelve months, InvestingPro data reveals concerning negative profit margins and rapid cash burn, factors that likely influenced shareholder support for the merger.
The detailed voting results for the proposals presented at today’s meeting are as follows: The Merger Agreement Proposal received 77,883,540 votes in favor, 72,168 against, and 8,191 abstentions. The Advisory Compensation Proposal, a non-binding vote on executive compensation related to the merger, received 76,629,623 votes for, 1,130,218 against, and 204,058 abstentions.
The Adjournment Proposal, which would allow for the meeting to be adjourned if necessary to solicit more votes, received 70,868,368 votes in favor, 7,048,577 against, and 46,954 abstentions.
The merger is still contingent upon the divestiture of certain Spirit business segments to Airbus SE (OTC:EADSY), as well as the receipt of regulatory approvals and the satisfaction of other conditions.
For a comprehensive analysis of Spirit AeroSystems’ financial health and future prospects, investors can access detailed research and additional insights through InvestingPro, which offers extensive coverage of over 1,400 US stocks.
The merger with Boeing is expected to create a more integrated and streamlined service within the aerospace industry, with Spirit AeroSystems’ specialization in aircraft parts and auxiliary equipment complementing Boeing’s manufacturing capabilities.
In other recent news, Spirit AeroSystems has been actively navigating through its financial landscape. The aircraft parts manufacturer has amended its repayment agreements with Boeing, with the new terms outlining repayment of outstanding advances totaling $605 million. In addition, the company has completed the sale of its subsidiary, Fiber Materials Inc., to Tex-Tech Industries, Inc. for $165 million, a strategic move amidst its significant debt challenges.
Spirit AeroSystems has also secured a non-interest-bearing line of credit totaling $107 million from Airbus, further strengthening its liquidity. Significant changes to executive compensation have been announced, tied to its impending merger with The Boeing Company (NYSE:BA). The company’s third-quarter revenue was reported at $1.47 billion with a net loss of $4.07 per share. Lastly, Spirit AeroSystems has announced a temporary furlough affecting approximately 700 employees.
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