BlackBerry (TSX:BB) has agreed to be bought out by a consortium led by Fairfax Financial Holdings Limited in a transaction valued at approximately US$4.7 billion, the company announced September 23.
The company has entered into a letter of intent agreement that will see BlackBerry shareholders receive US$9 per share.
The consortium has been given a six-week period to conduct due diligence before a definitive agreement is finalized. This is expected to be complete by November 4.
During that period, BlackBerry is entitled to shop around for an alternative offer, which can include actively soliciting bids and entering into negotiations. If such an offer is found, the company would be required to pay a termination fee to the consortium.
As of press time, shares of BlackBerry were trading on the TSX at $8.88.
