Alliant Techsystems Inc. (ATK) board of directors has established the distribution ratio for the previously announced spin-off of its Sporting Group business to ATK stockholders as a newly formed company called Vista Outdoor Inc.
ATK shareholders will receive two shares of Vista Outdoor common stock for every one share of ATK common stock they hold. The record date for the spin-off will be determined and publicly announced by the Company at a later date. ATK shares closed down $2.47, or 2.13 percent Tuesday at $113.42 a share Tuesday, down $2.47 cents. That put its market capitalization at $3.62 billion.
ATK and Orbital Sciences Corporation entered into a transaction agreement last year, whereby ATK's Aerospace and Defense Groups will merge with Orbital immediately following the spin-off of ATK's Sporting Group business. The companies anticipate completing the transaction on Feb. 9, 2015, subject to the satisfaction of remaining closing conditions, including the approval of both ATK's and Orbital's stockholders at their separate special meetings scheduled for Jan. 27, 2015.
Vista Outdoor common stock is expected to begin trading on a “when-issued” basis on the NYSE from Jan. 29 through Feb. 9, 2015. Trading of Vista Outdoor common stock under the symbol “VSTO” is expected to begin Feb. 10.
ATK and Orbital stockholders still have to approve the merger of the two companies.
Vista Outdoor will be headquartered in Utah and employ approximately 5,800 across the U.S. and internationally. The company's brands include: Federal Premium, Bushnell, Savage Arms, Blackhawk!, Primos, Final Approach, Uncle Mike's, Hoppe's, RCBS, Alliant Powder, CCI, Speer, Champion Targets, Gold Tip Arrows, Weaver Optics, Outers, Bollé, Cébé, and Serengeti.
