Astra founders look to snap up rocket launch firm for fraction of 2021 valuation

Nov 9 (Reuters) - Astra Space founders Chris Kemp and Adam London proposed to acquire the small rocket maker once valued at more than $2 billion for $27.8 million, according to a regulatory filing on Thursday.

The offer price of $1.50 per share represents a premium of about 103%, based on the stock's closing price on Wednesday.

The company's shares, which surged nearly 50% in premarket trading, have fallen 99.6% since Astra went public in 2021 after a few mission failures and delays in test flights in an industry dominated by Elon Musk's SpaceX.

In August, Astra laid off a quarter of its workforce and diverted focus from its rocket launch program, which was once a core part of its business to satellite propulsion systems.

Astra went public after merging with a special purpose acquisition company in a deal that valued the firm at $2.1 billion.

The company was considering selling a 51% stake in its in-space propulsion business, among other strategic sale options, Bloomberg News reported in October. (Reporting by Akash Sriram in Bengaluru; Editing by Shinjini Ganguli)