Canadian smartphone maker BlackBerry has signed a provisional agreement to be bought by a consortium led by Canada’s Fairfax Financial Holdings Limited.
In a statement released Monday (September 23) BlackBerry valued the deal at $4.7 billion and indicated the consortium would acquire all outstanding shares. It already owns about 10 percent of BlackBerry.
The statement also said that the consortium was permitted 6 weeks to conduct due diligence and that BlackBerry was entitled to go-shop during due diligence period, subject to payment of a termination fee in the event an alternative offer is accepted.
In the press release Barbara Stymiest, Chair of BlackBerry’s Board of Directors, is quoted as saying: “The Special Committee is seeking the best available outcome for the Company’s constituents, including for shareholders. Importantly, the go-shop process provides an opportunity to determine if there are alternatives superior to the present proposal from the Fairfax consortium.”
In the same statement, Prem Watsa, Chairman and CEO of Fairfax, said: “We believe this transaction will open an exciting new private chapter for BlackBerry, its customers, carriers and employees. We can deliver immediate value to shareholders, while we continue the execution of a long-term strategy in a private company with a focus on delivering superior and secure enterprise solutions to BlackBerry customers around the world.”
More information:
BlackBerry press release – here
CBC News – BlackBerry to be sold to consortium led by Fairfax Financial Holdings – here
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