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

Stuck in the sweet spot between youth and old age

Seventy-year-old Dave O’Haire, capped in a felt hat with feathers, walks down… Continue reading

UPDATE: Wildfire near Sparwood under control, suspected person caused

UPDATE: Friday, August 23, 2:00 p.m. The Robert Creek wildfire is now… Continue reading

Elk River reclaims property as its own

Laws make it harder to protect private land than ever before says farmer, local government

Black Press Kootenay Career Fair underway in Cranbrook

Today, Thursday, August 22, around 40 employers will be waiting to meet potential new employees

Artist Michael Hepher selected to paint mural downtown Fernie

The mural will be located on The Beanpod, 691 2 Ave, Fernie, on the outside wall.

B.C. sockeye returns drop as official calls 2019 ‘extremely challenging’

Federal government says officials are seeing the same thing off Alaska and Washington state

Independent cannabis store blazing uncharted trails in Fernie

Stick & Stone Cannabis Co., in Fernie opened its doors and welcomed… Continue reading

Expanded support to help B.C. youth from care attend university still falling short

Inadequate support, limited awareness and eligibility restrictions some of the existing challenges

Ethnic media aim to help maintain boost in voting by new Canadians

Statistics Canada says new Canadians made up about one-fifth of the voting population in 2016

Cross-examination begins for B.C. dad accused of killing young daughters

Andrew Berry is charged in the deaths of six-year-old Chloe and four-year-old Aubrey in 2017

Dog attacked by river otters, Penticton owner says

Marie Fletcher says her dog was pulled underwater by four river otters in the Penticton Channel

BC SPCA overwhelmed with cats, kittens needing homes

Large number of cruelty investigations, plus normal ‘kitten season’ to blame

B.C. Hydro applies for rare cut in electricity rates next year

Province wrote off $1.1 billion debt to help reverse rate increase

Most Read