LBSZone - Location and Privacy

Location Technology, Privacy, & Security

  • NEWS
    • Business
    • mobile mapping
    • fleet management
    • iOS
    • Android
    • Developer
    • infographics
  • Features
    • AroundtheWeb
  • Telematics
  • Drones
  • Events
  • Blog
  • CAREERS
    • Work from home
  • Subscribe
    • Weekly Newsletter
    • LBSzone Daily News Update
    • LBSzone PR Contacts
    • RSS
  • About Us
    • Partners Sites
      • GISuser
      • GeoJobsBIZ
      • LiDAR news
      • Amerisurv
    • Advertise
    • LBSzone Online Media Kit
    • Event Media Partner
You are here: Home / Press / Acquisitions / BlackBerry Enters into Letter of Intent with Consortium led by Fairfax Financial

BlackBerry Enters into Letter of Intent with Consortium led by Fairfax Financial

September 24, 2013 By LBSzone

Details of the deal include: 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

Credit: careercast.com

BlackBerry Limited (NASDAQ:BBRY; TSX:BB) 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 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.

The BlackBerry Board of Directors, acting on the recommendation of a special committee of the board of directors (the “Special Committee”), approved the terms of the LOI under which the consortium, which is seeking financing from BofA Merrill Lynch and BMO Capital Markets, would acquire BlackBerry and take the company private subject to a number of conditions, including due diligence, negotiation and execution of a definitive agreement (the “Definitive Agreement”) and customary regulatory approvals.

The Special Committee, chaired by Director Tim Dattels, was formed in August 2013 to review strategic alternatives for the company. J.P. Morgan and Perella Weinberg are acting as financial advisors and Skadden, Arps, Slate, Meagher & Flom LLP and Torys LLP are acting as legal advisors.

Diligence is expected to be complete by November 4, 2013 (“Diligence Period”).  The parties’ intention is to negotiate and execute a definitive transaction agreement by such date.   During such period, BlackBerry is permitted to actively solicit, receive, evaluate and potentially enter into negotiations with parties that offer alternative proposals (“Alternative Transactions”).

If (A) during the Diligence Period (i) BlackBerry enters into any letter of intent or definitive agreement providing for an Alternative Transaction, (ii) BlackBerry ceases to negotiate

with the consortium in good faith with a view to entering into the Definitive Agreement by the end of the Diligence Period,  or (iii) an Alternative Transaction is publicly proposed or publicly announced and is consummated within 6 months following the end of the Diligence Period, or (B) during the 3 month period following the end of the Diligence Period, BlackBerry enters into any agreement providing for an Alternative Transaction with a person with whom discussions were held before or during the Diligence Period, then BlackBerry shall pay Fairfax a fee of U.S. $0.30 per BlackBerry share, provided, however, that no such fee shall be payable if the consortium shall have reduced the price offered below U.S. $9.00 per share without the approval of the board of directors of  BlackBerry.  In the event that a definitive agreement is signed with Fairfax the termination fee will increase to U.S. $ 0.50 per share.

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.”

In addition to the consortium and its lenders being satisfied with all aspects of the due diligence to be carried out by them during the Diligence Period and the negotiation and execution of a binding definitive agreement approved by the board of BlackBerry, completion of the transaction will be subject to other customary conditions, including receipt of required regulatory approvals.  There can be no assurance that due diligence will be satisfactory, that financing will be obtained, that a definitive agreement will be entered into or that the transaction will be consummated.

BDT & Company, LLC, BofA Merrill Lynch and BMO Capital Markets are acting as financial advisors, and Shearman & Sterling LLP and McCarthy Tétrault LLP are acting as legal advisors to Fairfax in connection with the transaction.

About BlackBerry
A global leader in wireless innovation, BlackBerry® revolutionized the mobile industry when it was introduced in 1999. Today, BlackBerry aims to inspire the success of our millions of customers around the world by continuously pushing the boundaries of mobile experiences. Founded in 1984 and based in Waterloo, Ontario, BlackBerry operates offices in North America, Europe, Asia Pacific and Latin America. BlackBerry is listed on the NASDAQ Stock Market (NASDAQ: BBRY) and the Toronto Stock Exchange (TSX: BB). For more information, visit www.blackberry.com.






Related articles:

  • BlackBerry sale on hold, but Fairfax to investBlackBerry sale on hold, but Fairfax to invest
  • Blackberry expects GAAP net operating loss of approximately $950 million to $995 millionBlackberry expects GAAP net operating loss of approximately $950 million to $995 million
  • In deal with Amazon, BlackBerry to offer 240,000 Android appsIn deal with Amazon, BlackBerry to offer 240,000 Android apps
  • BlackBerry World adds security badges to show users which apps pass safety testingBlackBerry World adds security badges to show users which apps pass safety testing
  • Blackphone goes for Blackberry’s throat in privacy rowBlackphone goes for Blackberry’s throat in privacy row
  • Feature – BYOD or Be SquareFeature – BYOD or Be Square

Filed Under: Acquisitions Tagged With: blackberry

Recent Posts

Tuya Smart Releases New Smart Outdoor Solutions During CES 2021

Indoor Mapping Goes Mainstream with IMDFaaS

A self-driving vehicle from Mobileye's autonomous test fleet navigates the streets of Detroit. (Credit: Mobileye, an Intel Company)

CES 2021: Mobileye Innovation Will Bring AVs to Everyone, Everywhere

OmniVision Expands Image Sensor Family for Automotive Viewing Cameras With Higher 3MP Resolution and Added Cybersecurity

CES 2021: NGK to showcase its innovative power source EnerCera for maintenance-free IoT applications


shop for geogeek swag

twitter

Location Tech News

Tuya Smart Releases New Smart Outdoor Solutions During CES 2021

Indoor Mapping Goes Mainstream with IMDFaaS

CES 2021: Mobileye Innovation Will Bring AVs to Everyone, Everywhere

OmniVision Expands Image Sensor Family for Automotive Viewing Cameras With Higher 3MP Resolution and Added Cybersecurity

CES 2021: NGK to showcase its innovative power source EnerCera for maintenance-free IoT applications

How to get Instagram likes and followers for free

Smart Eye Previews New Aftermarket Driver Monitoring System at All-Digital CES® 2021

More Posts from this Category

Copyright Spatial Media LLC 2003 - 2015