Tesla Offers to Acquire SolarCity
June 21 2016 - 6:20PM
Dow Jones News
Elon Musk proposed combining his electric-car and solar-energy
companies, in a bold effort to consolidate his holdings and offer
widespread clean-energy products from vehicles to power in
homes.
Tesla Motors Inc., Mr. Musk's Palo Alto, Calif., electric-car
company, on Tuesday offered to acquire SolarCity Corp. in a stock
deal valuing it at up to $2.8 billion. Mr. Musk is the chairman and
largest shareholder of both companies.
Tesla in a letter to SolarCity's chief executive said its offer
represented a value of $26.50 to $28.50 a share, or a premium of
roughly 21% to 30% over SolarCity's Tuesday closing price of
$21.19.
Mr. Musk, who has garnered attention for unusual financial
maneuvers to support his companies, recused himself from voting on
the deal at the Tesla board meeting at which it was approved and
will do so for any vote on the SolarCity board as well, the letter
said. Antonio Gracias, a director on the boards of both companies,
also recused himself, the letter said.
SolarCity shares surged 24% in after hours trading, while Tesla
shares fell 6.7%.
Write to Mike Ramsey at michael.ramsey@wsj.com
(END) Dow Jones Newswires
June 21, 2016 18:05 ET (22:05 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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