The US$4.7 billion deal announced in September that would have seen BlackBerry bought out by a consortium led by Fairfax Financial Holdings Limited (TSX: FFH) has fallen through, with Fairfax instead leading a group of investors in a US$1 billion investment in debentures.
Of the total $1 billion investment, Fairfax itself has agreed to acquire US$250 million.
In addition, BlackBerry announced November 4 that CEO Thorsten Heins is stepping down. In Heins' place, John S. Chen will be stepping in as interim CEO and, upon the closing of the transaction, will be appointed executive chair of BlackBerry's board of directors.
November 4 was set to be the date when the definitive agreement was to be finalized, pending a six-week period of due diligence, after the original acquisition announced September 23 that would have seen BlackBerry shareholders receiving a buyout of US$9 per share.
The closing of the $1 billion transaction is subject to TSX approval.
Chen's experience includes serving as chairman and CEO of Dublin, California-based Sybase, Inc. and director for both Wells Fargo & Co. and Walt Disney Co.
When the September 23 announcement of the acquisition was made, shares had been trading on the TSX in the $8.88 range. As of press time November 4, shares of BlackBerry were trading on the TSX at $6.83.
