BlackBerry received a buyback offer for $ 4.7 billion

BlackBerry has signed a letter of intent with the Canadian holding company Fairfax Financial, which could lead the smartphone maker to return to private ownership, writes The Verge.

The news followed the cessation of trading in BlackBerry shares, as it was last week before the announcements of mass layoffs and leaving the consumer market. According to a press release, the deal is valued at approximately $ 4.7 billion, so that shareholders will receive $ 9 per share.

As previously reported, BlackBerry is going to concentrate on the corporate market, in which the company is more successful. This move, according to Fairfax CEO Prem Watsa, will enable BlackBerry to "continue to pursue a long-term strategy as a private company with a focus on providing excellent and secure enterprise solutions for BlackBerry customers around the world."

The letter of intent is a preliminary step before the company becomes private and will be owned by Fairfax, but the BlackBerry council may also receive other suggestions - which in a similar situation significantly delayed Dell's plans to become private. These proposals must be made before November 4, after which BlackBerry and Fairfax will be able to conclude a final agreement.

BlackBerry (formerly RIM) has experienced a recession in recent years, and since last month the company has been open for redemption. Fairfax is a strong contender: it has assets of about $ 31 billion, and Watsu himself was compared to financial magnate Warren Buffett - Watsa made a fortune by buying stakes in troubled companies, and then improving their performance. Fairfax has long been a major BlackBerry investor, and currently owns about 10% of the company's shares.