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BlackBerry to be sold to FairFax financial Holdings Ltd in $4.7 billion

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In a press release  ”BlackBerry Limited today announced it has signed a letter of intent agreement  under which a consortium to be led by Fairfax Financial Holdings Limited (“Fairfax”) has offered to acquire the company subject to due diligence.

The main points of agreements are

-BlackBerry shareholders would receive U.S. $9 per share in cash.

-Transaction valued at approximately U.S. $4.7 billion.

-Consortium permitted 6 weeks to conduct due diligence.

-BlackBerry entitled to go-shop during due diligence period, subject to payment of a termination fee in the event alternative offer accepted.

The letter of intent contemplates a transaction in which BlackBerry shareholders would receive U.S. $9 in cash for each share of BlackBerry share they hold, in a transaction valued at approximately U.S. $4.7 billion. The consortium would acquire for cash all of the outstanding shares of BlackBerry not held by Fairfax. Fairfax, which owns approximately 10 percent of BlackBerry’s common shares, intends to contribute the shares of BlackBerry it currently holds into the transaction.

Read what went against BlackBerry?

Barbara Stymiest, Chair of BlackBerry’s Board of Directors, said: “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.”

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.”

BlackBerry another iconic company failed when competition was posed to them by Apple and Google. Its sad but true.

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