Fairfax invests over $ 250 million on BlackBerry - Teletime

In what may be considered a “vote of confidence” to new CEO John Chen, the BlackBerry has received the Canadian investor Fairfax Financial Holdings an injection of $ 250 million. This amount, according to the manufacturer announced on Wednesday, 8, will be accomplished through the purchase of convertible debentures by subsidiaries of Fairfax.

Debentures represent 6% of the total BlackBerry. Thus, the investor who currently owns 9.9% stake in BlackBerry could convert the debentures into shares, increasing its share. According to Bloomberg, if no other company do the conversion, Fairfax would with 17.6% share. At the other extreme, if all the corporations holding debenture perform the conversion, the share of the total capital of Fairfax BlackBerry would be 15.6%.

This investment is in addition to the value of $ 1 billion previously announced in November, also with the issuance of convertible debentures by the Canadian company. The BlackBerry expects the transaction with the newly announced Fairfax is completed until the 16th of January.

This is not the first time that the BlackBerry Fairfax tries to rescue the financial hole that is – in the last financial statement, the company reported a loss of $ 4.4 billion after 24% drop in revenues. Given this performance, the manufacturer was tightrope between being sold during the entire year of 2013 and one of the strongest negotiations was an attempt to close the capital through an offering of $ 4.7 billion of Fairfax. However, the financial failed to raise the necessary funds and the transaction failed.