Board US electric car manufacturer Tesla company just to Solarcity co-founder and CEO Leif Lyndon (Lyndon Rive) submitted an offer to acquire the latter. In other words, the elon Musk, CEO of Tesla as the company intends to acquire its own chairman solar company SolarCity. In fact, SolarCity is Musk’s household photovoltaic power generation project company.
In a letter to Leif offer letter, Tesla Board proposed acquisition SolarCity all outstanding common shares as trading returns, SolarCity will receive Tesla’s common stock, that is, the price is equivalent to a share deal US $ 26.5 to 28.5 US dollars.
Tesla shares in accordance with the previously announced proposed transaction, the total stock trading this stock exchange price of approximately $ 2.8 billion.
Tesla acquired SolarCity’s initiative will help Musk early as possible “to use fully sustainable fuel to accelerate the transformation of the world transportation industry” targets.
Musk in a conference call said, “This is our many years of heated debate and has been considering the matter from the perspective of product integration and provide regular users and business users experience the most convincing point of view, we really need to achieve tighter product integration. “he also said,” the timing is very appropriate, because Tesla is best to take measures to solve the problem of storage battery, and will be able to provide some Solarcity just exciting products. ”
If the deal goes well, then all of the Tesla brand products will fall. Musk said the biggest difference is, sales and enforcement costs will decline as Solarcity and Tesla products will be integrated.
Musk said, “decided to merge the two companies into one, is independent of the shareholders other than the result of my vote as long as the majority of shareholders except me favor, then this decision must push ahead. it’s that simple, we may propose the idea, but the final decision should also be decided by the shareholders. I personally think that this is very easy to understand. over time, more and more people will understand the truth. ”
The following is the contents of Tesla’s quotations.
Dear Linton:
You can submit to Tesla and SolarCity Board of Directors to acquire ordinary shares in exchange for all of your company’s outstanding common shares of the proposal, we feel happy. According to the results of due diligence matters, we propose to follow 0.122 times 0.131 times the price of ordinary shares of Tesla common stock in exchange for SolarCity. That is to say, the equivalent price per share of $ 26.5 to 28.5 US dollars acquisition of SolarCity all shares outstanding, the price 21-30% higher than today’s closing price of SolarCity. We believe that our proposals offer fair and reasonable, but also to allow SolarCity and its shareholders to accept the value, but also allow the shareholders the opportunity to participate SolarCity related issues after the integration of the company, as they will hold the transaction by Tesla equity.
Tesla Board potential integration prospects SolarCity and Tesla are very excited. We believe that the possibility of co-products, services and other aspects of the operation will further increase, and this merger will be beneficial to our company to create its own core competitiveness, and be able to walk in the forefront of the market, continue to develop innovative solutions, and launch a sustainable transportation energy. We believe that both sides of the merger will bring significant benefits both our shareholders, customers and employees.
We are committed to advance this possible deal, which SolarCity and Tesla respective shareholders are reasonable and fair. To ensure this, Tesla prepared to allow the two companies disinterested shareholders to vote on this proposed transaction, and on the advice of the majority shareholder, contributed to the merger to produce the perfect ending. In addition, since Musker and Antonio Gracias (Antonio Gracias) have a stake in the two companies, they will not be in the board meetings of both companies vote on the proposal. We believe that any deal to go through the board of directors of the parties in consultation and careful deliberation, but also give full consideration to the views of our respective shareholders.
Our proposal is based on the results of due diligence, after the final transaction documents mutually agreed to negotiate after the final approval by the board of directors of Tesla decision. Although the transaction would also be subject to routine routine conditions, but we believe that Tesla can be well in a more rapid way to coordinate and complete the transaction. We do not want a major regulatory or other obstacles arise in successfully advancing this allows both sides to benefit from mutual transactions.
Tesla expect the two sides in a friendly manner to advance the deal.
We hope that further consultations on the potential transaction with you and want to quickly reach a final transaction agreement.
Tesla Board Sincerely,
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