Blackberry announces USD 4.7 billion buyout plan to be led by Fairfax Financial

blackberrySmartphone maker Blackberry which was trying to sell itself off by November has signed a letter of intent with a consortium led by Fairfax Financial to buyout the company for about USD 4.7 billion, announced the company.

As per the deal, the consortium will pay USD 9 per share for all outstanding shares of BlackBerry which are not held by Fairfax, currently it owns only 10% stake in the company.

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.”

The Diligence is expected to be complete by November 4, 2013.

The company did not reveal the names of the members of the consortium, although a report by Reuters states Canada’s deep-pocketed and influential pension funds as the likely participants. “We need to be careful given disclosure constraints, but we can say that we are focused on a strong Canadian solution,” said Fairfax spokesman Paul Rivett.

The news comes in just a few days after the company announced fall in revenue with a net operating loss of approximately USD 950 million to USD 995 million in second quarter results and plans to sack 40% of its workforce worldwide.

Click here to read the full announcement.

Recently, Microsoft had also announced to acquire Nokia Devices and Services business for USD 7.17 billion.

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