Blackberry in $4.7B Buyout Deal with Fairfax

Canadian smartphone maker BlackBerry has signed an agreement to go private in a $4.7 billion deal led by its biggest shareholder Fairfax Financial Holdings Holdings.

Canada-based BlackBerry said it has signed a letter of intent with Fairfax “subject to due diligence.” Fairfax owns about 10% of BlackBerry shares.

The consortium is seeking financing from BofA Merrill Lynch and BMO Capital Markets to acquire BlackBerry and take the company private. Canadian pension funds have been said to be cool to the idea of a leveraged buyout.

Trading in BlackBerry, which on Friday said it would report a Q2 loss of nearly $1 billion and would cut 40% of its workforce, or 4,500 jobs, was halted Monday afternoon on the news. The stock plunged 17% on Friday and was down 5% on Monday before trading was halted. When trading resumed, the stock was up nearly 1%. BlackBerry stock was near 8.80 in afternoon trading in the stock market Monday, giving it a market cap near $4.54 billion. Source

 

Tags: Buyout, Buyout Funds, Leveraged Buyout, Buyout Firm, BlackBerry Buyout, BlackBerry, Canadian Smartphone Maker, Smartphone Maker, Fairfax, Fairfax Financial Holdings Holdings, BlackBerry Shares, BofA Merrill Lynch, BMO Capital Markets, Canadian Pension Funds.


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