The two largest shareholders of stock in Armstrong World Industries (Lancaster, Pa.) are set to divest shares as part of the company's most recently announced secondary public offering, according to LancasterOnline.com.
The two companies, Asbestos Personal Injury Settlement Trust and Armor TPG Holdings LLC, are offering the public 5.98 million shares. Recently, in a corporate filing with the Securities and Exchange Commission, Armstrong said each share would cost $51, within $4 of its peak price since the company emerged from bankruptcy in 2006. Though the sellers would reduce their stakes in Armstrong to 53 percent from 63 percent, they would still retain the titles of majority holders.
Armstrong filed for bankruptcy in 2000 amid a flood of personal injury claims resulting from alleged asbestos exposure in its products. It emerged from bankruptcy in 2006 as a new corporation with new stock, funding the asbestos trust by giving it more than half of that new corporate stock. Periodically, it sells some of the stock to generate cash to pay the claims, LancasterOnline.com wrote.
