A week after electric vehicle (EV) and battery company Tesla Motors announced a proposal to acquire SolarCity, the solar company’s board of directors has formed a special committee of independent directors to evaluate the bid.
Tesla offered to acquire all of the outstanding shares of SolarCity common stock in exchange for Tesla stock, and the deal is estimated to total up to $2.8 billion.
According to SolarCity, its board has granted the special committee the exclusive authority to evaluate SolarCity’s long-term business plan and stand-alone opportunities for value creation against a broad range of strategic alternatives.
The special committee consists of Donald R. Kendall Jr. and Nancy E. Pfund. Kendall will serve as chair of the special committee. and Skadden, Arps, Slate, Meagher & Flom LLP will serve as the committee’s legal counsel, and Lazard will serve as its financial advisor to assist in its review.
SolarCity says it does not intend to comment on or disclose further developments regarding the special committee’s evaluation unless and until it deems further disclosure is appropriate or required.
To read more on Tesla’s proposal, click here.