Astronics Corp. will give its shareholders one additional share of the Buffalo aircraft electronics and lighting manufacturer’s stock for every five that they now own as part of a move to put more shares into circulation and make its stock more attractive to investors.
The stock dividend will not increase the value of an Astronics shareholder’s investment because the move will reduce the price of each share of stock by 20 percent. The stock dividend will be paid to shareholders of both Astronics’ Class A and Class B shares. The dividend will be paid in Class B shares, which convert to Class A shares if they are traded and have 10 times the voting power of Class A shares.
The stock dividend will increase the number of Class B Astronics shares outstanding to 7.6 million from the current 4 million. The company has 14.1 million Class A shares.
Shareholders will receive cash for any fractional shares.
The stock distribution is the eighth that Astronics has made since 1988. Astronics profits and sales both more than doubled during the second quarter as the company brought in new business from a series of four acquisitions.
The additional shares will be distributed Sept. 19 to shareholders of record Sept. 5.