BlackBerry's Q10 launched in April.

Sold: BlackBerry agrees to $4.7 billion offer from Fairfax Holdings

The deal - for $9 a share - would privatize the Canadian smartphone maker. A 'due diligence' period expires on November 4.

BlackBerry has signed a letter of intent offer from consortium led by Fairfax Holdings Ltd., after the group made an offer to buy the Canadian smartphone maker for $9 a share, or $4.7 billion.

Trading on BlackBerry shares was halted Monday afternoon, at $8.23 per share. Fairfax currently owns 9.9 per cent stake in the company. The deal would make BlackBerry a private company, as opposed to the TSX and NASDAQ-trading public company it is now.

from Deal/Book (NY Times), by David Gelles and Ian Austin:

“While being privately held would allow BlackBerry to restructure without worrying about bad news affecting its share price, several analysts have questioned how it can remain in the phone business without access to open capital markets. Its competitors like Apple and Google are among the most profitable and largest corporations in the world.”

(*In line with Deal/Book’s reporting, the news of BlackBerry pending sale came on the same day Apple announced it had sold 9,000,000 5C and 5S iPhones, sending that company’s stock up five per cent.)

————————————————————

Visit NBCNews.com for breaking news, world news, and news about the economy

————————————————————

In a news release, BlackBerry says the letter of intent permits Fairfax six weeks to “conduct due diligence” and it allows BlackBerry to “go-shop” during that period, with a termination fee applied if the company accepts an alternative offer.

The diligence period ends on November 4.

“We believe this transaction will open an exciting new private chapter for BlackBerry, its customers, carriers and employees,” said Prem Watsa, chairman and CEO of Fairfax.

“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.”

BlackBerry was founded in 1984 in Waterloo, Ontario, and was introduced to its market(s) in 1999.

Just last week, the company announced it was cutting 4,500 jobs across all its properties, and first quarter losses totalled nearly $1 billion.

Just Posted

New driver ticketed after sending vehicle through White Rock garden

‘We heard a big bang and he drove right into the bush,’ witness says

Hands Against Racism takes over Surrey City Hall

Event included music, dance; two people received awards

Surrey couple visits the Philippines each year to give back to wife’s former village

Nissa and Bob Clarkson give toys to children, provide medical-dental missions

Sparks fly as SUV speeds down wrong side of Highway 1 trying to flee RCMP

Captured on video, the vehicle headed westbound against oncoming traffic before crashing

Trudeau calls May 6 byelection for B.C. riding of Nanaimo-Ladysmith

The riding opened up when Sheila Malcolmson resigned in January

B.C. VIEWS: The hijacking of our education system gathers speed

Children taught to strike and shout fringe far-left demands

Judges on Twitter? Ethical guidance for those on the bench under review

Canadian judges involvement in community life are among issues under review

VIDEO: Vancouver fall to Seattle in Game 2 of the playoffs

Thunderbirds topple the Giants 4-1 in Langley, evening the Western Conference series one game each

Calgary captain has 3 points as Flames torch Canucks 3-1

Giordano leads way as Alberta side cracks 100-point plateau

1,300 cruise ship passengers rescued by helicopter amid storm off Norway’s coast

Rescue teams with helicopters and boats were sent to evacuate the cruise ship under extremely difficult circumstances

B.C. university to offer first graduate program on mindfulness in Canada

University of the Fraser Valley says the mostly-online program focuses on self-care and well being

Province announces $18.6 million for B.C. Search and Rescue

The funding, spread over three years, to pay for operations, equipment, and training

Most Read

l -->