Fairfax Financial Holdings’ bid to take BlackBerry private in a US$4.7 billion deal may have failed but the company was still able to arrange a US$1 billion investment into the beleaguered smartphone manufacturer and enterprise services company. Fairfax itself put up US$250 million of that and we learned today who the other investors are.
A U.S. Securities and Exchange Commission filing identifies them and also reveals how much they invested in exchange for debenture bonds that could eventually be converted to shares. Here is the complete list:
- Fairfax Financial Holdings Limited: US$250,000,000
- Mackenzie Financial Corporation: US$200,000,000
- Canso Investment Counsel Ltd.: US$300,000,000
- Markel Corporation: US$100,000,000
- Brookfield Asset Management Inc.: US$50,000,000
- Qatar Holding LLC: US$100,000,000
The filing also outlines what is described as the “substantive terms for employment agreement for John Chen” who steps in as Executive Chair of BlackBerry’s Board of Directors and interim CEO. His key responsibilities are described as “Control over strategic direction, strategic relationships, and organization goals of BlackBerry and authority over hiring, retention, duties, and responsibilities of all officers, executives and other employees.”
He will collect a base salary of US$1,000,000 with a performance bonus of 200% of his base salary. He will also be given 13,000,000 restricted share units that will vest over five years. He’ll also have the customary benefits as well as four weeks of vacation and the services of a car with driver.
Should Chen be able to turn BlackBerry’s fortunes around, he stands to make a tidy profit!
Sources : SEC // The Globe and Mail