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Cape Town - BlackBerry has announced in a statement on Monday that it has agreed to a buyout by a consortium of investors for $4.7bn.
The company said it has signed a letter of intent agreement under which a consortium to be led by Fairfax Financial Holdings has offered to acquire the company subject to due diligence.
The deal contemplates a transaction in which BlackBerry shareholders would receive US$9 in cash for each share of BlackBerry share they hold.
Fairfax, which owns approximately 10% of BlackBerry's common shares, intends to contribute the shares of BlackBerry it currently holds into the transaction.
The BlackBerry Board of Directors, acting on the recommendation of a special committee of the board of directors, approved the terms of the deal, subject to a number of conditions.
The consortium, which would take BlackBerry private, is seeking financing from BofA Merrill Lynch and BMO Capital Markets.
Chair of BlackBerry's Board of Directors, Barbara Stymiest, said the special committee is seeking the best available outcome for the company's constituents and shareholders.
"Importantly, the go-shop process provides an opportunity to determine if there are alternatives superior to the present proposal from the Fairfax consortium."
Fairfax CEO Prem Watsa 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."
On Friday, BlackBerry said it would cut 4 500 jobs amid hefty losses and weak sales.
Morningstar analyst Brian Colello told Reuters that BlackBerry is likely to go private or sell off some of its business units.
- Fin24
The company said it has signed a letter of intent agreement under which a consortium to be led by Fairfax Financial Holdings has offered to acquire the company subject to due diligence.
The deal contemplates a transaction in which BlackBerry shareholders would receive US$9 in cash for each share of BlackBerry share they hold.
Fairfax, which owns approximately 10% of BlackBerry's common shares, intends to contribute the shares of BlackBerry it currently holds into the transaction.
The BlackBerry Board of Directors, acting on the recommendation of a special committee of the board of directors, approved the terms of the deal, subject to a number of conditions.
The consortium, which would take BlackBerry private, is seeking financing from BofA Merrill Lynch and BMO Capital Markets.
Chair of BlackBerry's Board of Directors, Barbara Stymiest, said the special committee is seeking the best available outcome for the company's constituents and shareholders.
"Importantly, the go-shop process provides an opportunity to determine if there are alternatives superior to the present proposal from the Fairfax consortium."
Fairfax CEO Prem Watsa 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."
On Friday, BlackBerry said it would cut 4 500 jobs amid hefty losses and weak sales.
Morningstar analyst Brian Colello told Reuters that BlackBerry is likely to go private or sell off some of its business units.
- Fin24
