Oct 15, 2016 01:15 AM EDT
Elon Musk, Solar City Pushing Through With Planned Merger Amidst Facing Lawsuits [VIDEO]
Tesla CEO Elon Musk aims to acquire SolarCity to produce a new solar roof. However, some stockholders do not approve and decided to sue.
In June, Tesla made an offer to acquire the alternative energy company SolarCity. A letter proposal was sent to SolarCity co-founder and CEO Lyndon Rive intending to purchase all of the company's common stock for Tesla's common shares, wherein trading at the time of the offer is at $26.50 to $28.50 a share. The stock-for-stock deal would amount to $2.8 billion based on the stock price before the proposal was announced.
In September, Musk announced his aim to acquire SolarCity, intending to use their expertise in producing a new solar roof. In a tweet, he announced that the company is aiming for an Oct. 28 reveal. The merger reportedly is part of Musk's master plan to develop a solar roof that also has a battery product for his electric vehicles.
Aiming for Oct 28 unveil in SF Bay Area of new Tesla/SolarCity solar roof with integrated Powerwall 2.0 battery and Tesla charger.
— Elon Musk (@elonmusk) September 22, 2016
According to Elektrek, an updated filing to the SEC shows that Tesla is facing 4 different lawsuits (now 7), which was filed by stockholders between Sept. 1 and Sept. 14, alleging a breach of fiduciary duties over the proposed merger. In the disclosure, Musk believes that the claims are without merit. The plaintiffs are asking for an injunction to prevent the consummation of the merger, wherein a hearing is set for Oct. 14.
Despite this, Tesla and SolarCity announced they are pushing through with the $2.6 billion all-stock merger. A date was set for shareholders of their respective companies to vote on the transaction on Nov. 17.
It is expected on Oct. 14, Musk will ask the court for the consolidation of the 7 lawsuits the company is facing. After which, Tesla will unveil a surprise product on Oct. 17, ahead of the solar roof unveiling that was scheduled on Oct. 28. There are no clues what the surprise product is, but rumor has it that it might be a new version of at-home energy storage devices - Tesla's Powerwall and Powerpack.
Tesla product unveiling on the 17th (unexpected by most), followed by Tesla/SolarCity on the 28th — Elon Musk (@elonmusk) October 9, 2016
More details about Tesla's planned acquisition of SolarCity is available here.
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