US: Tesla shareholders approve $2.6 billion SolarCity merger

Two of the companies Elon Musk is heavily involved in have merged, after the decision was approved by those with an interest in the company.

Shareholders at Tesla, which Musk is CEO at, voted in favour of the merger with SolarCity, where Musk is chairman. “More than 85 per cent of shares voted were cast in favor of the acquisition,” Tesla said in a blog post. The votes excluded Musk and other affiliated shareholders but Tesla did not say what percentage of shareholders did vote.

The approval – previously given by SolarCity’s shareholders – means that the two companies can complete the deal to join forces. Tesla says the deal is likely to be finalised in the “coming days” and after the vote Musk told shareholders: “Your faith will be rewarded.”

The deal was first announced in June this year and will see the electric car company takeover SolarCity in an all-stock transaction with the equity value being $2.6 billion.

The announcement initially prompted a mixed reaction from traders as Tesla shares fell and those of SolarCity rose. At least four lawsuits were filed by shareholders over the proposed merger; which, according, to MarketWatch says are moving ahead.

For Musk, the deal is part of a larger plan to combine the battery technologies of Tesla with the power generating capabilities of SolarCity.

Full content: Wired

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