Musk lays out plan to buy Twitter for $46.5 billion

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The American businessman Elon Musk has indicated this Thursday that seeks to “negotiate a deal” to buy the social network Twitter and has revealed that it has 46,500 million dollars (42,919 million euros) in financing with the support of various financial entities.

In a document delivered to the Securities Market Commission (SEC) of the United States, it has reported that it has guarantees to finance the launch of a possible takeover bid (OPA) on the company or “immediately” negotiate a transaction in the terms set out in the non-binding proposal presented last week and regarding which no response has yet been received.

Musk launched a $43 billion bid for the company on April 14, prompting the company to take an internal step to buy time while it evaluated the proposal.

Presents the commitment of several entities for financing

The versatile businessman has acknowledged before the US market regulator that, “given the lack of response from Twitter, is studying whether to launch a takeover bid to acquire all of the outstanding common shares at a price of $54.20 per share”, although he stressed that for the moment he has not determined whether to do so.

Thus, Musk has filed with the SEC a series of commitments with entities to finance the $46.5 billion potential transaction.

In this sense, it has the commitment of Morgan Stanley and other entities to provide financing amounting to 25,500 million dollars (23,536 million euros). Specifically, the participating entities have agreed to provide 12,500 million dollars (11,537 million euros) through margin loans available to Musk.

In addition, will provide another 13,000 million dollars (11,999 million euros) through a secured term senior credit facility amounting to 6,500 million dollars (5,999 million euros), a 500 million dollar secured revolving senior credit facility (461 million euros), a a senior secured bridge facility for an aggregate amount of up to 3,000 million dollars (2,769 million euros) and a senior unsecured bridge facility of another 3,000 million dollars.

On his side, Elon Musk himself has submitted a letter to the SEC in which he agrees to contribute approximately 21,000 million dollars (19,383 million euros) to cover all amounts payable in relation to the transaction plus related charges and expenses. .

Twitter activated a ‘poison pill’

the tycoon, who owns 9.1% of Twitter, has offered a premium of 54% for each share compared to January 28, when Musk began buying shares of Twitter, as well as 38% compared to April 1, when he revealed his position in the company.

By taking over all the shares in this operation, Twitter would be excluded from the stock market in the event that the board of directors approves the offer and the shareholders accept it.

Against this, Twitter announced a legal measure known as ‘poison pill’, with which he intends to delay or avoid the purchase of the company by Musk, complicating the purchase of more than 15% of the shares.

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