Skip to main content

Tesla (TSLA) and SolarCity (SCTY) reportedly about to announce merger agreement with ‘go-shop provision’

After just over a month of due diligence and negotiations, Tesla (TSLA) and SolarCity (SCTY) are reportedly about to announce a merger agreement, likely on Monday. Interestingly, the agreement is reportedly likely to include a ‘go-shop’ provision to allow SolarCity to request offers from other potential buyers before bringing the offer to a shareholders vote.

The news of an agreement comes from “people familiar with the matter” talking to Reuters on Sunday.

Last week, a similar report came out suggesting that a deal could be announced in the “coming days.”

After speaking with major Tesla and SolarCity shareholders, Elon Musk recently said that he is confident an agreement would be adopted by around two-thirds of the shareholders. Although he gave his support of the offer and made a potential tie-up between the companies an important part of his “Master Plan“, he himself recused from voting his shares worth about 22% of each company.

The original offer announced by Tesla last month was a ~$2.8 billion deal to acquire SolarCity in an all-stock transaction that would see SCTY shares convert to TSLA shares at a ratio of 0.122 to 0.131. It’s not clear if the offer has changed, but a ‘go-shop’ provision could potentially increase the price. We will likely know more on Monday.

FTC: We use income earning auto affiliate links. More.

Stay up to date with the latest content by subscribing to Electrek on Google News. You’re reading Electrek— experts who break news about Tesla, electric vehicles, and green energy, day after day. Be sure to check out our homepage for all the latest news, and follow Electrek on Twitter, Facebook, and LinkedIn to stay in the loop. Don’t know where to start? Check out our YouTube channel for the latest reviews.

Comments

Author

Avatar for Fred Lambert Fred Lambert

Fred is the Editor in Chief and Main Writer at Electrek.

You can send tips on Twitter (DMs open) or via email: fred@9to5mac.com

Through Zalkon.com, you can check out Fred’s portfolio and get monthly green stock investment ideas.