1. hannibalmoot's Avatar
    BlackBerry Receives Investment of U.S. $1 Billion from Fairfax Financial and Other Institutional Investors


    BlackBerry Receives Investment of U.S. $1 Billion from Fairfax Financial and Other Institutional Investors

    John S. Chen to be Appointed Executive Chair of BlackBerry's Board of Directors and Interim CEO; Prem Watsa to be Appointed Lead Director

    Company Concludes Review of Strategic Alternatives and Announces Changes to Board and Leadership Team

    WATERLOO, ONTARIO and TORONTO, ONTARIO--(Marketwired - Nov. 4, 2013) - BlackBerry (NASDAQ:BBRY)(TSX:BB), a world leader in the mobile communications market, today announced that it has entered into an agreement pursuant to which Fairfax Financial Holdings Limited ("Fairfax") and other institutional investors (collectively, the "Purchasers") will invest in BlackBerry through a U.S. $1 billion private placement of convertible debentures. Fairfax has agreed to acquire U.S. $250 million principal amount of the Debentures. The transaction is expected to be completed within the next two weeks.

    Under the terms of the transaction, the Purchasers will subscribe for U.S. $1 billion aggregate principal amount of 6% unsecured subordinated convertible debentures (the "Debentures") convertible into common shares of BlackBerry at a price of U.S. $10.00 per common share (the "Transaction"), a 28.7% premium to the closing price of BlackBerry common shares on November 1, 2013. The Debentures have a term of seven years. Based on the number of common shares currently outstanding, if all of the U.S. $1 billion of Debentures were converted, the common shares issued upon conversion would represent approximately 16% of the common shares outstanding after giving effect to the conversion.

    Upon the closing of the transaction, John S. Chen will be appointed Executive Chair of BlackBerry's Board of Directors and, in that role, will be responsible for the strategic direction, strategic relationships and organizational goals of BlackBerry. Prem Watsa, Chairman and CEO of Fairfax, will be appointed Lead Director and Chair of the Compensation, Nomination and Governance Committee and Thorsten Heins and David Kerr intend to resign from the Board at closing.

    In addition, Mr. Heins will step down as Chief Executive Officer at closing and Mr. Chen will serve as Interim Chief Executive Officer pending completion of a search for a new Chief Executive Officer.

    Today's announcement marks the conclusion of the review of strategic alternatives previously announced on August 12, 2013.

    "Today's announcement represents a significant vote of confidence in BlackBerry and its future by this group of preeminent, long-term investors," said Barbara Stymiest, Chair of BlackBerry's Board. "The BlackBerry Board conducted a thorough review of strategic alternatives and pursued the course of action that it concluded is in the best interests of BlackBerry and its constituents, including its shareholders. This financing provides an immediate cash injection on terms favorable to BlackBerry, enhancing our substantial cash position. Some of the most important customers in the world rely on BlackBerry and we are implementing the changes necessary to strengthen the company and ensure we remain a strong and innovative partner for their needs."

    Ms. Stymiest added, "I am also pleased that John Chen, a distinguished and proven leader in the technology industry, has agreed to serve as BlackBerry's Executive Chairman. I look forward to continuing to serve BlackBerry as a member of its Board of Directors and chair of the Board's Audit and Risk Management Committee. On behalf of the Board, I would also like to thank Thorsten for his service to BlackBerry over the past six years. Under his leadership, BlackBerry established a more efficient cost structure, developed new products, saw the adoption of BES 10 and delivered the BlackBerry 10 platform. These are all significant accomplishments. We are grateful for his contributions and wish him well in his future endeavors."

    "Fairfax is a long-time supporter, investor and partner to BlackBerry and, with this investment, reinforces its deep commitment to the future success of this company," said Prem Watsa, Chairman and CEO of Fairfax. "I look forward to rejoining the BlackBerry Board and to working with the other directors and management team, under John Chen's leadership, to shape the next stage of BlackBerry's strategy and growth."
    "I am pleased to join a company with as much potential as BlackBerry," said Mr. Chen. "BlackBerry is an iconic brand with enormous potential - but it's going to take time, discipline and tough decisions to reclaim our success. I look forward to leading BlackBerry in its turnaround and business model transformation for the benefit of all of its constituencies, including its customers, shareholders and employees."

    The closing of the transaction is subject to customary conditions, including approval from the Toronto Stock Exchange.

    Pursuant to the Transaction agreement, the investors have an option to purchase up to an additional U.S. $250 million principal amount of Debentures within 30 days following closing. If an additional U.S. $250 million of Debentures is issued and all U.S. $1.25 billion of Debentures were converted, the common shares issued upon conversion would represent approximately 19.2% of the common shares after giving effect to the conversion, based on the number of common shares currently outstanding.
    Last edited by hannibalmoot; 11-04-13 at 07:49 AM.
    11-04-13 07:38 AM
  2. Uzi's Avatar
    hope things get better for BlackBerry and I do hope they do better marketing with the z30

    waiting for Z30
    11-04-13 07:40 AM
  3. qbnkelt's Avatar
    Well it looks like I am about to get a Q10.
    SirJes and amazinglygraceless like this.
    11-04-13 07:42 AM
  4. hannibalmoot's Avatar
    This does sound a bit more promising..would like to hear Chris' take on this new approach.
    11-04-13 07:44 AM
  5. ray689's Avatar
    Well it looks like I am about to get a Q10.
    Don't forget the Z30 . Amazing device.

    Posted via CB10
    11-04-13 07:45 AM
  6. cary709394's Avatar
    Heins is gone. This is a good news indeed. Hope Mike will be back as CEO sooner or later. BlackBerry need to have a CEO with experience and vision.
    11-04-13 07:58 AM
  7. BoldPreza's Avatar
    This sounds good. It means some short term funding and technically only part of the company will be owned by Fairfax. Now they need to get a good CEO and produce a plan with details of the direction of the company.

    At that time I get my new Z30.

    Posted via CB10
    11-04-13 08:01 AM
  8. yessuz's Avatar
    WATERLOO, ONTARIO and TORONTO, ONTARIO--(Marketwired - Nov. 4, 2013) - BlackBerry (NASDAQ:BBRY)(TSX:BB), a world leader in the mobile communications market, today announced
    is it just me, or it is a bit overrated statement?
    11-04-13 08:26 AM
  9. yessuz's Avatar
    BTW, it is nothing good!

    It means, that BBRY could not find the buyer.
    And all this "we sit on pile of cash", but suddenly we "are raising 1 bn funds"! it's BS.

    I am really sorry for that, but I see that end is near.
    11-04-13 08:30 AM
  10. hannibalmoot's Avatar
    Shares creeping back up...c'mon higher dammit!
    11-04-13 08:48 AM
  11. SirJes's Avatar
    BTW, it is nothing good!

    It means, that BBRY could not find the buyer.
    And all this "we sit on pile of cash", but suddenly we "are raising 1 bn funds"! it's BS.

    I am really sorry for that, but I see that end is near.
    Smh

    Posted via CB10
    11-04-13 09:05 AM
  12. yessuz's Avatar
    Smh

    Posted via CB10
    and you disagree with my thoughts?
    or you're just blind?!
    11-04-13 09:12 AM
  13. SirJes's Avatar
    Chen developed and led Sybase?s re-invention strategy to evolve what had become a mature slower growth technology company into a $1B+ high-growth innovator. First, Mr. Chen returned Sybase to profitability and improved its balance sheet. He then defined and implemented Sybase?s ?Unwired Enterprise? strategy to reposition the company, leveraging its database knowledge to create new offerings that addressed the emerging markets for analytics and mobility.[1]

    Under Chen?s leadership, Sybase achieved strong financial performance and shareholder returns, including 55 consecutive quarters of profitability, $2.8 billion of cash generated, and a 28 percent compound annual growth rate of its market capitalization from a low of $362 million to $5.8 billion in 2010, when it was acquired by SAP AG.[4]

    This guy has a nice track record.

    Posted via CB10
    11-04-13 09:24 AM
  14. qbnkelt's Avatar
    Don't forget the Z30 . Amazing device.

    Posted via CB10
    I want the white Q
    I wanted the white 9900 and it never came to AT&T.

    me likey the Q
    11-04-13 09:48 AM
  15. SirJes's Avatar
    I want the white Q
    I wanted the white 9900 and it never came to AT&T.

    me likey the Q
    I would like a thread from u when u get the Q lol, I know u said u were waiting to see what happens today to decide, you and quite a few others actually

    Posted via CB10
    11-04-13 09:51 AM
  16. jhimmel's Avatar
    and you disagree with my thoughts?
    or you're just blind?!
    Insulting reply. Anyway, you are in a great position. Knowing the outcome without a shadow of a doubt will allow you to cash in. Short big, and make a ton of cash.
    11-04-13 09:58 AM
  17. qbnkelt's Avatar
    I would like a thread from u when u get the Q lol, I know u said u were waiting to see what happens today to decide, you and quite a few others actually

    Posted via CB10
    I WANTED the white 9900 so badly IT HURT.

    I want the Q but I wanted to see if someone was going to buy the company for parts. Feeling a bit better right now. Seems like the company will continue intact.

    The rest is still cautious.


    Sent from whichever BBM carrying device I happen to grab, via Tapatalk
    SirJes likes this.
    11-04-13 10:01 AM

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