Tesla to provide plans for combined company before SolarCity merger vote
A Tesla logo hangs on a building outside of a Tesla dealership in New York, U.S., April 29, 2016. REUTERS/Lucas Jackson/File Photo
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(Reuters) - Tesla Motors Inc (NASDAQ: TSLA) said on Wednesday it will provide strategic and product plans for a combined company of the electric automaker and SolarCity Corp (NASDAQ: SCTY) ahead of a Nov. 17 merger vote by shareholders of both companies.
"Over the next few weeks, Tesla will share important updates regarding our strategic plan for the combined company" including an Oct. 28 unveiling of a solar roof product, Tesla said in a company blog post on Wednesday.
The companies said in a filing with the Securities and Exchange Commission, also on Wednesday, that each SolarCity share will receive 0.11 Tesla shares upon completion of the proposed merger, unchanged from previous SEC filings.
On June 21, when Tesla's plans to purchase SolarCity were announced, the notional value of a SolarCity share, based on 0.11 Tesla shares, was $24.16.
Tesla shares fell nearly $23 the following day, but have since recovered and at midday on Wednesday were at $201.70 per share.
The value of a SolarCity share would be $22.18 based on Tesla's share price at midday on Wednesday.
Tesla expects to issue about 11,080,333 shares of the company's common stock to SolarCity shareholders if the merger is approved, representing a stake of about 6.9 percent in Tesla.
The new SEC filling also shows that the Tesla board determined that shareholders as of Sept. 23 would be eligible to vote on the merger proposals.
The same filing says the Tesla shareholder meeting will be held on company property in Fremont, California and the SolarCity meeting at a hotel in Foster City, California.
On Sunday, Tesla Chief Executive Elon Musk said the company would not need to raise capital in the fourth quarter and likely not in the first quarter of 2017 to fund the launch of its Model 3 electric car and other products.
In a subsequent SEC filing by Tesla, the company said the amount and timing of funds that Tesla may raise was undetermined.
Musk controls 21.7 percent of SolarCity stock, Wednesday's filing shows.
Tesla reports third quarter financial results on Oct. 26.
(Reporting by Bernie Woodall; Editing by Bernadette Baum)
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Related EntitiesTesla, Earnings, Definitive Agreement, Model 3
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