BlackBerry Ltd. has a struck a deal to sell the beleaguered smartphone maker to a group led by investor Fairfax Financial Holdings for about $4.7 billion in cash.
Fairfax is one of BlackBerry's most prominent investors, owning 10% of BlackBerry's shares.
The deal calls for BlackBerry shareholders to receive $9 a share. The company's stock, which was halted on Monday pending the news, was down about 6% to $8.23.
BlackBerry said its board of directors "approved the terms of the letter of intent," and that a consortium including Merrill Lynch and BMO Capital Markets, intended to take the company private.
The transaction is expected to be completed by Nov. 4th, but it is subject to six weeks of due diligence and BlackBerry is entitled to "go-shop" the company during this period.
If BlackBerry backs out of the deal, it would owe Fairfax a fee of 30 cents a share, or about $157 million.
Last Friday, BlackBerry pre-announced dismal second-quarter results, including plans to write down almost $1 billion in unsold phone inventory.
The company said Monday that its board has approved the proposed transaction.
Write to Carolyn King at [email protected]
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Fairfax is one of BlackBerry's most prominent investors, owning 10% of BlackBerry's shares.
The deal calls for BlackBerry shareholders to receive $9 a share. The company's stock, which was halted on Monday pending the news, was down about 6% to $8.23.
BlackBerry said its board of directors "approved the terms of the letter of intent," and that a consortium including Merrill Lynch and BMO Capital Markets, intended to take the company private.
The transaction is expected to be completed by Nov. 4th, but it is subject to six weeks of due diligence and BlackBerry is entitled to "go-shop" the company during this period.
If BlackBerry backs out of the deal, it would owe Fairfax a fee of 30 cents a share, or about $157 million.
Last Friday, BlackBerry pre-announced dismal second-quarter results, including plans to write down almost $1 billion in unsold phone inventory.
The company said Monday that its board has approved the proposed transaction.
Write to Carolyn King at [email protected]
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