Securities and Exchange Commission filing of 21st June stated, Twitter’s board of directors suggested that shareholders support the planned $44 billion takeover of the firm by Tesla CEO Elon Musk.
Twitter submitted a proxy statement with the US Securities and Exchange Commission on June 21st, inviting its shareholders to participate in a special meeting over Elon Musk’s $44 billion acquisition plan. Inside the filing, the board of directors of Twitter unanimously urges its shareholders to vote in support of the merger offer.
Musk restated his willingness to proceed with the takeover during a virtual discussion with Twitter workers last week. However, stocks of Twitter remained considerably below the selling price, indicating great uncertainty that it will occur.
Twitter statement to the stakeholders
After evaluating the facts more extensively stated in the attached proxy statement, the Twitter Board of Directors concluded that the merger as well as the other operations proposed are fair, advisable, and in the greatest advantage of Twitter and also its stockholders.
Twitter’s Board of Directors advises voting “FOR” the merger agreement approval, “FOR” the remuneration that Twitter would or may give to its designated executive officers in connection with the merger and with the dissolution of the extraordinary meeting owing to a lack of votes
As part of his effort to purchase Twitter, Elon Musk formed units: X Holdings I, X Holdings II, and X Holdings III. Twitter will combine with X Holdings II, a unit of X Holdings I, according to the terms of the agreement. Following the merger, Twitter became an entirely unit of the parent corporation, X Holdings I.
Furthermore, Twitter will no longer be a publicly listed corporation, and common stock will be converted into the opportunity to access $54.20 in cash, with no interest.
A live online livestream of the special meeting will be available at http://www.virtualshareholdermeeting.com/TWTR2022SM.
The firm’s stock rose in pre-market trade, reaching a pre-market peak of $39.51. The shares were trading up 2% at $38.19.