Elon Musk could reportedly receive a helping hand from a South Korean financial services company as the Oct. 28 deadline for the Twitter Inc. TWTR deal looms close.
What Happened: South Korea-based Mirae Asset Financial Group is considering providing 300 billion Korean won ($209.25 million) in funding to assist Musk with purchasing Twitter, Reuters reported, citing a source familiar with the matter. A final decision will reportedly be taken in the coming days.
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Mirae’s plan was earlier reported by the Korean Economic Daily, Reuters said. The firm is looking to jointly acquire a stake in Twitter along with Musk, the local media outlet reported.
Why It’s Important: Mirae invested in Musk’s SpaceX earlier this year, Reuters said, citing a source.
Musk and his team have mustered equity and debt funding for the deal, while the Tesla Inc. TSLA CEO has also committed to some funding personally.
The current inclement market has forced some of the financing partners to put on hold plans to resell the $13 billion debt they have agreed to provide for the deal. The banks are reportedly planning to hold the debt on their balance sheet until investor appetite improves.
It is also widely believed that Musk may have to sell more of his Tesla stake over the next few days to fund the deal. The sale may be obviated if the billionaire can mobilize more equity commitment from financiers.
If the deal does not go through by the deadline, Musk faces the prospect of fighting a legal battle with Twitter in the Delaware court.
Price Action: Twitter closed Monday’s session at $51.52, up 3.27%, according to Benzinga Pro data.
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