BlackBerry just received an offer to go private from Fairfax Financial Holdings Limited for $9 per share, or $4.7 billion.
Fairfax signed a letter of intent for the offer. To be clear, this is not a done deal. BlackBerry’s board has agreed to the terms in the letter, but BlackBerry can still seek other offers.
Fairfax already owns about 10% of BlackBerry. BlackBerry is currently trading at about $8.20 per share.
BlackBerry and Fairfax are now entering a “diligence period” where a number of conditions must be met. This diligence period should last about six weeks. We’ll get more details on November 4.
Last week, BlackBerry announced that it plans to cut 4,500 jobs. It also said it lost nearly $1 billion last quarter.
Here’s the statement from BlackBerry:
WATERLOO, ONTARIO–(Marketwired – Sept. 23, 2013) - BlackBerry Limited (BBRY)(BB.TO) today announced it has signed a letter of intent agreement (“LOI“) under which a consortium to be led by Fairfax Financial Holdings Limited (“Fairfax“) has offered to acquire the company subject to due diligence.
The letter of intent contemplates a transaction in which BlackBerry sh[...] Read More...