BlackBerry has signed a ‘letter of intent’ agreement that could see a consortium led by Canadian shareholder Fairfax Financial Holdings Limited acquiring the company. Fairfax, which currently owns around 10% of BlackBerry shares, would pay around $4.7 billion (£2.9 billion) for the remainder of the business.
Although BlackBerry’s board of directors has approved the terms of the agreement, it’s still able to consider alternative proposals as well.
Preliminary checks by Fairfax are expected to be completed by 4th November.
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.”
In August, when BlackBerry announced that it was looking at the possibility of a sale, Prem Watsa resigned from his position as a BlackBerry board member to avoid any potential conflict.