LOS ANGELES — Northrop Grumman Corp. is selling 7,256,500 shares of TRW Automotive Holdings Corp. for approximately $142.6 million, or $19.65 per share. The sale, which was expected to close Friday, March 11, will result in a first quarter 2005 after-tax gain of approximately $70 million, or 19 cents per share.
The shares were sold in private transactions to TRW Automotive Holdings Corp. which will issue and sell the same amount of shares in private transactions with institutional accredited investors. Automotive Investors LLC (an affiliate of the Blackstone Group) granted its approval for Northrop Grumman’s sale in lieu of the registration of three million priority shares required under the TRW Automotive stockholders agreement.
The sale reduces Northrop Grumman’s ownership of TRW Automotive Holdings Corp. to 9.9 percent or 9,743,500 shares. Northrop Grumman sold TRW Automotive to the Blackstone Group in February 2003 and obtained the equity stake under the terms of that sale.
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