Rancho Cordova-based rocket engine manufacturer GenCorp Inc. announced a plan to repurchase up to $55 million worth of shares of its common stock under special guidelines overseen by the federal Securities and Exchange Commission.
GenCorp said federal rules allows companies to repurchase shares at times when they might otherwise be prevented from doing so by securities laws or because of self-imposed trading blackout periods. Repurchases made under the plan are subject to SEC regulations as well as certain price, market, volume and timing constraints in the plan.
As a result, GenCorp said there is no guarantee of the exact number of shares that will be repurchased under its plan. Pricing ultimately will be based on market conditions. In early February, GenCorp’s board of directors authorized a share repurchase program of up to $75 million.
In recent weeks, GenCorp has announced layoffs – including 61 workers at its local headquarters ‑ as part of a nationwide downsizing. GenCorp has been working to streamline operations within its recently formed Aerojet Rocketdyne subsidiary.
GenCorp bought Rocketdyne in a $550 million transaction that was completed in December.
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