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Bloomberg
SolarCity Corp. board members approved a $2.6 billion buyout from Elon Musk’s Tesla Motors Inc. in the solar industry’s biggest deal to date.
Tesla agreed to pay $25.37 a share in stock for the largest U.S. rooftop solar company, according to a statement. Analysts have said the price is too low and investors have questioned the wisdom of Musk combining his electric-car maker with the clean-energy company. The agreement allows SolarCity to solicit competing takeover offers through Sept. 14, the companies said.
The vote will now go to Tesla and SolarCity shareholders. That excludes Musk, who as chairman and the largest investor in both companies recused himself when he announced the offer June 21. Other SolarCity directors have excluded themselves from voting: Musk’s cousins Lyndon and Peter Rive, the co-founders of SolarCity, as well as JB Straubel and Antonio Gracias, who also have ties to both companies.
Musk initially offered SolarCity investors $26.50 to $28.50 a share in Tesla stock, saying the combined company would become a clean-energy giant providing electric vehicles powered by solar rooftops and battery storage systems.
SolarCity board members Nancy Pfund and Donald Kendall Jr. were chosen to consider Tesla’s bid. All the other directors have connections to Tesla. Evercore advised Tesla, and Wachtell, Lipton, Rosen & Katz was its legal adviser. The financial advisor to the special committee of SolarCity’s board was Lazard Ltd. and its legal adviser was Skadden, Arps, Slate, Meagher & Flom.