Tesla board forms committee to consider going private

Tesla board forms committee to consider going private

Musk broke silence in a blog post Monday after several days of speculations on how he is going to privatize Tesla following his announcement on Twitter on August 7 that he was considering taking Tesla private at a price of 420 US dollars per share. Funding to take the company private is apparently secured as well.

Musk said in the statement that a meeting with the managing director of Saudi Arabia's sovereign wealth fund prompted his tweet last week about wanting to take Tesla private.

The board had confirmed earlier this month that it had "met several times over the last week" to discuss going private.

Saudi Arabia's Public Investment Fund (PIF) manages more than $230 billion in assets, but about 65 percent of that is stakes in large Saudi companies and most of the rest has been committed in overseas deals such as funding commitments to Blackstone Group LP's USA infrastructure fund or SoftBank Group Corp's Vision Fund. Musk further claimed that he had the "funding secured" to take the company private, an act that would cost up to $70 billion. The lawsuit alleges that Musk tweeted that message to boost Tesla's stock price and punish those investors who bet against the company. "Obviously, the Saudi sovereign fund has more than enough capital needed to execute on such a transaction", Efe quoted him as saying.

The board has given the committee authority to act on its behalf, including negotiating a deal to take Tesla private.

Musk tweeted on Monday that he was working with buyout firm Silver Lake and investment bank Goldman Sachs Group as financial advisers.

Manchester United Star Lands Huge Blow On Jose Mourinho
FC's Paul Mariner feels it'll be no love lost after Man United missed out on signing Bayern Munich defender Jerome Boateng. Here's where United stand on their various defensive candidates with less than 24 hours to the deadline.

Goldman declined to comment on Tuesday.

The independent directors are Robyn Denholm, Brad Buss and Linda Johnson Rice.

Things aren't all rainbows and kittens at Tesla as the board forms a special committee to act on any potential proposal to go private from CEO Musk. The company appears to be playing catch-up with Musk's assertions about the momentum behind a deal, highlighting the speed at which the proposed transaction is unfolding.

Buss served as chief financial officer of solar panel installer SolarCity for two years before retiring in 2016.

The special committee has retained lawyers - Latham & Watkins - in addition to a legal team used by the company.

Related Articles