Concluding a transaction that surprised the world when it was announced one month ago, and which we hope the regulators are poring over as a result of a myriad of “related party transactions” and shared top shareholders…
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… moments ago SolarCity (whose stock is currently halted) announced that Tesla and SolarCity would combine in all-stock deal; in which SCTY stockholders will receive 0.110 Tesla common shares per SCTY share, valuing SCTY common stock at $25.37 per share.
SCTY announced that “after comprehensive due diligence in consultation with independent financial and legal advisors, the independent members of the Tesla and SolarCity boards of directors approved this transaction”, and added that it that expects to achieve cost synergies of $150 million in the first full year after closing.
SolarCity will now have a 45-day ‘go-shop’ period, which runs through September 14, 2016. “This means that SolarCity is allowed to solicit alternative proposals during that time.” It is assured that no overbid will emerge.
This post was published at Zero Hedge on Aug 1, 2016.
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