Elon Musk has applied to the United States Securities and Exchange Commission (SEC) to buy Twitter. Musk, if the purchase announced yesterday does not take place, 1 billion dollars to Twitter termination fee will pay.
Agreeing to pay $ 54.20 per share, Musk decided to buy the company in total. $43.4 billion Will buy with pricing. As a result of the agreement, it is also stated that Twitter will pay 1 billion dollars as a withdrawal fee under certain conditions.
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Elon Musk and Twitter’s termination obligations became clear
It is stated that the funds for the deal will provide a $12.5 billion margin loan against their shares in companies owned by Musk. Musk will take out $13 billion in loans from some financial institutions, especially Morgan Stanley. It is estimated that Musk will use approximately $21 billion in equity for the Twitter acquisition.
The signed agreement states that “If the Parent and Acquisition Subsidiary fulfill their obligations to complete the Merger and the Parent is unable to complete the Merger pursuant to the Merger Agreement, including non-financing of equity, debt and/or margin loan financing, the Parent shall terminate Twitter for $1 billion. He will have to pay the fee.” statements are included.
In the previous report published on the subject, it was stated that Twitter will pay a 2.5 percent termination fee and Musk has no obligations. According to the published agreement, however, both parties will have responsibility for the termination.
According to the partnership agreement, 24 October 2022 at 17:00′The purchase will be terminated if the file is not closed by In some cases, it is stated that the termination date may be extended by 6 months.
The deal ensures that Twitter will be open to other offers and will pay Musk the termination fee if it signs with a different company. Twitter will be able to terminate the deal if shareholders vote against it.
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