09/23/2013 01:50 EDT | Updated 11/23/2013 05:12 EST

BlackBerry shares trading halts after consortium offer

Trading of BlackBerry shares were halted on Nasdaq and the Toronto Stock Exchange this afternoon after the company announced it has signed a letter of intent purchase offer from a consortium led by Fairfax Financial Holdings Limited that is subject to due diligence.

BlackBerry, based in Waterloo, Ont., said in a news release Monday it has signed the "letter of intent agreement," which outlines a deal in which BlackBerry shareholders would receive $9 US cash for each BlackBerry share they hold. The transaction is valued at approximately $4.7 billion, the release said.

Fairfax currently owns approximately 10 per cent of BlackBerry's common shares and "intends to contribute the shares of BlackBerry it currently holds into the transaction," BlackBerry said.

More to come