Struggling Canadian company BlackBerry, who very recently announced that it expects to post quarterly losses of close to $1 billion, has signed a letter of intent agreement (LOI) to a $4.7 billion buyout offer from majority shareholders Fairfax Financial, taking the company private.
Of course, the deal is pending to a due diligence, which will take six weeks and end on November 4. The deal will see Fairfax valuing the company at $4.7 billion, and shareholders will receive $9 per share held should the deal go through. As is standard procedure, BlackBerry is allowed to solicit for other offers during Fairfax’s diligence period. Meanwhile, trading on BlackBerry shares has once again been suspending following the announcement, with the last trade at $8.81.
What’s more telling is the statement from chairman and CEO of Fairfax, Prem Watsa:
“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.”
Once again, there is no mention of exiting the consumer market, but the final sentence again implies that BlackBerry will likely focus its attention to an “end-to-end solution” for enterprises, as CEO Thorsten Heins mentioned at its early earnings book call last Saturday.
(Source: Engadget)
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