- General
- August 14, 2018
- 4 minutes read
Tesla’s board forms 3 member panel to decide on acquisition
Tesla On the heels of a not yet very clear acquisition, EV manufacturer Tesla has formed a special committee consisting…
 |
| Tesla |
On the heels of a not yet very clear acquisition, EV manufacturer Tesla has formed a special committee consisting of 3 directors to negotiate with its CEO Elon Musk concerning taking the electric car maker private although as stated, A clear offer has not been made yet from Musk.
Although a firm proposal has not been received, This indicates a signal to a serious consideration of a buy which was first touted by Musk 7 days ago with a tweet which came to investors and shareholders with a big surprise.
Just recently, Musk outed more info in a Tesla blog post concerning plans of taking the company private with him defending his tweet stating “funding secured” saying that he was already sure of a deal with the Saudi Arabian Public Investment Fund before taking the considered acquisition to public eye and also made note that shareholders would still be allowed to keep their shares in a newly formed private entity if the purchase goes through in addition to clarifying that most of the funding would come in form of equity as opposed to debt financing.
The committee consists of independent directors Brad Buss, Robyn Denholm and Linda Johnson Rice and will look into the deal which has taken Wall Street analysts and investors by storm after its announcement.
Musk has also stated that he’s working with Goldman Sachs and tech investment giant Silver Lake on the acquisition but yet has not successfully convinced analysts and investors about a firm deal.
As per Tesla’s filing with the SEC, It stated :
- “The special committee has the full power and authority of the Board of Directors to take any and all actions on behalf of the Board of Directors as it deems necessary to evaluate and negotiate a potential Going Private Transaction and alternatives to any transaction proposed by Mr. Musk. The special committee’s grant of authority provides that no Going Private Transaction will be consummated without the approval of the special committee. The special committee expects to provide a further update concerning the process associated with Mr. Musk’s proposal as soon as practicable.”
We’ll get to see more on this acquisition plans and whether it would officially be closed as time passes by with action from the 15 year old major automobile company.
