Continuing its efforts at revival, BlackBerry has reportedly said that it plans to raise $1.25 billion through convertible debentures.
Fairfax Financial Holdings, which had signed a tentative agreement in September this year to acquire the company for $4.7 billion, will reportedly invest $250 million in the convertible debentures. Fairfax holds 10 per cent in the company.
In a statement issued by the company in this regard, BlackBerry stated that it had entered into an agreement ?pursuant to which Fairfax Financial Holdings and other institutional investors will invest in BlackBerry through a $1 billion private placement of convertible debentures.? The transaction is expected to be completed within the next two weeks.
Meanwhile, the company has launched an internal restructuring exercise as well. As per news reports, Thorsten Heins, chief executive officer (CEO), has stepped down. This position will be temporarily taken over by John Chen, a director in Wells Fargo and The Walt Disney Company.
Meanwhile, Prem Watsa, founder, chairman, and CEO, Fairfax Financial Holdings, will serve as lead director.
