Fairfax to take BlackBerry private
The troubled smartphone maker has agreed to be sold to a consortium led by one of its major shareholders that will result in it going private.
It’s all over. BlackBerry, which once led the smartphone market, has agreed to be bought by a consortium, led by major shareholder Fairfax Financial. The proposed deal is subject to the conclusion of a due diligence of the business.
In terms of the proposal, BlackBerry shareholders will be paid US$9 in cash for each share they hold, valuing the Canadian company at $4,7bn. Fairfax already holds about 10% of BlackBerry’s equity.
BlackBerry’s board has approved the terms of the proposed deal. The Fairfax consortium is seeking financing from BofA Merrill Lynch and from BMO Capital Markets. The deal will result in BlackBerry going private. It’s subject to a number of conditions, including the successful conclusion of a due diligence process.
In a statement, BlackBerry says it expects this due diligence to be completed by 4 November. — (c) 2013 NewsCentral Media