Canadian technology company BlackBerry has decided to initiate a review of its portfolio of businesses to explore strategic alternatives that can enhance shareholders’ value.
The assessment will be carried out by the company’s board of directors.
It will consider several alternatives, one of which also includes the potential separation of one or more of BlackBerry’s businesses.
The board has not scheduled a specific timetable for the entire review process and its completion.
According to BlackBerry, this is mainly because the board members are not planning to unveil any of the developments associated with this process, ‘unless and until’, the board finalises a specific transaction, agreement or termination of this review.
However, the company noted that this review does not imply or assure that the process will result in a deal or any other sort of transaction.
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BlackBerry CEO and executive chairman John Chen said: “BlackBerry is executing on a strong, well-resourced plan to deliver revenue and annual recurring revenue growth, as well as significant improvements in non-GAAP earnings per share and cashflow this fiscal year.
“Although we expect achievement of this plan to deliver significant shareholder benefits, we do not believe that this is fully reflected in the market’s current valuation of the company.
“Accordingly, the board and management believe it is an appropriate time to initiate a comprehensive review of the company’s portfolio.
“The review aims to identify and evaluate opportunities to further enhance shareholder value. As we undertake this review, we remain fully focused on delivering our plan and remain committed to our customers, partners and employees.”
Meanwhile, BlackBerry also confirmed that it will not make any changes in its previously announced deal to sell all of its non-core patents as well as patent applications to Key Patent Innovations’ newly established subsidiary Malikie Innovations.
Closing of this deal with Malikie is now subject to certain regulatory approvals and conditions.