BlackBerry Ltd. stunned the investing world by announcing it had signed a deal to be bought by a consortium led by Fairfax Financial Holdings Limited, the largest holder of the company with about 10%, in a deal valued at U$4.7 billion
The consortium is said to have offered US$9 per share in cash for the smartphone maker.
The announcement of the deal came a month after Mr Watsa stepped down from the BlackBerry board as the company announced it would seek a sale.
Mr Watsa joined the BlackBerry board in January 2012 and his resignation a month back was widely viewed precursor to him making a bid.
On Friday, BlackBerry had announced a cut of about 40 per cent of its global workforce (about 4,500 jobs) and record a writedown of nearly $1 billion.
“We believe this transaction will open an exciting new private chapter for BlackBerry, its customers, carriers and employees,” Fairfax chairman and chief executive Prem Mr Watsa said in a statement today.
“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 BlackBerry board of directors has approved the terms of the letter of agreement.
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