Twitter stated in a statement on Wednesday that billionaire Elon Musk will have to pay her a $ 1 billion penalty clause if she cancels her deal to buy the company. social media for $ 44 billion in cash.
The disclosure claimed that one of the conditions that obliged Mask to pay was the failure of the agreement due to the failure to provide the required liquidity, debt or equity-backed loan financing.
Twitter said Monday that Musk had secured $ 25.5 billion in debt and equity financing and pledged to repay $ 21 billion in debt in the form of shares.
The disclosure says Twitter will have to pay the same fine if it abandons the deal in certain circumstances.
The disclosure also revealed that the deal could be canceled if it is not closed by 24 October. The date can be extended by another six months to meet certain conditions for its closure, such as anti-monopoly permits and foreign investment.
Musk, who is also the CEO of the manufacturer of auto Tesla electricians on Monday reached an agreement to buy Twitter in a deal that would put the richest man in the world in control of the social media which includes millions of users and global leaders.
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