Billionaire Elon Musk has registered 3 companies in Delaware under the name “X Holdings” to support his attempt to buy Twitter and turn it into a private company following it was delisted from the stock exchange.
According to a filing with the Securities and Exchange Commission, X Holdings I will be the parent company overseeing the potential transaction, while X Holdings II will merge with Twitter and use to purchase its existing common stock. A separate filing from the Securities and Exchange Commission (SEC) adds that X Holdings III will be used to help fund the deal.
This comes as Musk explores whether he will start a bid to acquire all outstanding shares of Twitter’s common stock, noting that the board of directors did not respond to his offer of $ 54.20 per share.
In turn, Musk said that Received pledges of regarding $46.5 billion to help fund a potential dealincluding approximately $21 billion in equity financing and approximately $25.5 billion in debt financing through Morgan Stanley and other institutions including Bank of America, Mizuho Bank, Barclays, MUFG, Societe Generale and BNP Paribas, according to It was reported by “Fox News” and reviewed by “Al Arabiya.net”.
The offer comes following Musk, who owns a 9.2% stake in Twitter, harshly criticized the social media platform and its CEO, Paraj Agrawal, and recently questioned whether the company strictly adheres to the principles of freedom of expression.
Why did Musk refuse to join the board of directors?
Although Musk was initially invited to join Twitter’s board of directors, he later turned down the offer.
The reason is that by joining the board of directors, Musk would not be able to own more than 14.9% of Twitter shares during his tenure, which would have continued until the 2024 annual meeting of Twitter.
Despite this, following the announcement of Musk’s $43 billion offer, Twitter’s board of directors adopted an aggressive plan, called “toxic pills,” which would prevent him or any other entity or group from acquiring ownership of more than 15% or more of the outstanding common stock, which is The plan, which will expire on April 14, 2023.
