Skip to main content
The Globe and Mail
Support Quality Journalism
The Globe and Mail
First Access to Latest
Investment News
Collection of curated
e-books and guides
Inform your decisions via
Globe Investor Tools
Just$1.99
per week
for first 24 weeks

Enjoy unlimited digital access
Enjoy Unlimited Digital Access
Get full access to globeandmail.com
Just $1.99 per week for the first 24 weeks
Just $1.99 per week for the first 24 weeks
var select={root:".js-sub-pencil",control:".js-sub-pencil-control",open:"o-sub-pencil--open",closed:"o-sub-pencil--closed"},dom={},allowExpand=!0;function pencilInit(o){var e=arguments.length>1&&void 0!==arguments[1]&&arguments[1];select.root=o,dom.root=document.querySelector(select.root),dom.root&&(dom.control=document.querySelector(select.control),dom.control.addEventListener("click",onToggleClicked),setPanelState(e),window.addEventListener("scroll",onWindowScroll),dom.root.removeAttribute("hidden"))}function isPanelOpen(){return dom.root.classList.contains(select.open)}function setPanelState(o){dom.root.classList[o?"add":"remove"](select.open),dom.root.classList[o?"remove":"add"](select.closed),dom.control.setAttribute("aria-expanded",o)}function onToggleClicked(){var l=!isPanelOpen();setPanelState(l)}function onWindowScroll(){window.requestAnimationFrame(function() {var l=isPanelOpen(),n=0===(document.body.scrollTop||document.documentElement.scrollTop);n||l||!allowExpand?n&&l&&(allowExpand=!0,setPanelState(!1)):(allowExpand=!1,setPanelState(!0))});}pencilInit(".js-sub-pencil",!1); // via darwin-bg var slideIndex = 0; carousel(); function carousel() { var i; var x = document.getElementsByClassName("subs_valueprop"); for (i = 0; i < x.length; i++) { x[i].style.display = "none"; } slideIndex++; if (slideIndex> x.length) { slideIndex = 1; } x[slideIndex - 1].style.display = "block"; setTimeout(carousel, 2500); }

The company logo is see at the Blackberry campus in Waterloo in this file photo taken September 23, 2013. BlackBerry Ltd is abandoning a plan to sell itself and instead will replace its chief executive officer and raise about $1 billion from institutional investors, including its largest shareholder, the smartphone maker said on Monday.

Mark Blinch/Reuters

Manulife Financial Corp.'s asset management arm is the latest Canadian investor buying into BlackBerry Ltd.'s $1-billion (U.S.) bond deal, joining Fairfax Financial Holdings Ltd. as other investment firms trim back their portion of the troubled smartphone maker's new debt issue.

On Monday, Fairfax announced it would raise $1-billion for BlackBerry with convertible debentures. Previously, Fairfax had said in a provisional bid that it planned to take BlackBerry private in a leveraged buyout that valued the Waterloo, Ont.-based tech company at $4.7-billion.

But the firm later decided that BlackBerry wasn't suited to a high-debt situation, and instead announced the new financing and a management shakeup in which BlackBerry CEO Thorsten Heins would be replaced by former Sybase Inc. CEO John Chen, who would join as both executive chairman and interim CEO.

Story continues below advertisement

Manulife Asset Management Ltd., which revealed its investment in a document filed with the U.S. Securities and Exchange Commission, is purchasing $70-million of BlackBerry's debt. Because the full $1-billion had already been bought up by other firms, Manulife's purchase was enabled by Brookfield Asset Management Inc. and Markel Corp. trimming back their previously revealed positions.

Brookfield, which said it bought in on behalf of clients, reduced its $50-million stake to $10-million, while Markel pared back a $100-million investment to $70-million. The firms with the largest stake in BlackBerry's debt are Fairfax, with $250-million; Mackenzie Financial Corp, with $200-million; and Canso Investment Counsel Ltd., which purchased $300-million, the largest stake.

BlackBerry, which dominated the smartphone industry for years, has suffered through declining sales, a worsening financial situation and thousands of layoffs – including a recent and ongoing cut of roughly 40 per cent of its staff – as smartphone rivals Apple Inc. and Samsung Electronics Co. Ltd. stole market share.

The firm's new BlackBerry 10 phones, launched earlier this year, were supposed to help the company catch up with rivals' more popular devices, but the new BlackBerrys have not ushered in the comeback that Mr. Heins and many investors hoped for – leading to a strategic review in which top management and a special committee shopped around for a buyer. That process came to an end on Monday, with Fairfax chief Prem Watsa rejoining the board as lead director and the addition of Mr. Chen – a turnaround veteran who revived Sybase and sold it to SAP AG.

Report an error Editorial code of conduct
Tickers mentioned in this story
Due to technical reasons, we have temporarily removed commenting from our articles. We hope to have this fixed soon. Thank you for your patience. If you are looking to give feedback on our new site, please send it along to feedback@globeandmail.com. If you want to write a letter to the editor, please forward to letters@globeandmail.com.

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff.

We aim to create a safe and valuable space for discussion and debate. That means:

  • Treat others as you wish to be treated
  • Criticize ideas, not people
  • Stay on topic
  • Avoid the use of toxic and offensive language
  • Flag bad behaviour

Comments that violate our community guidelines will be removed.

Read our community guidelines here

Discussion loading ...

To view this site properly, enable cookies in your browser. Read our privacy policy to learn more.
How to enable cookies