Summary
Berkshire Hathaway Inc. (BRK-B) filed an 8-K on February 14, 2013, to report a significant material definitive agreement. The company entered into an equity commitment letter on February 13, 2013, to invest $12.12 billion in Hawk Acquisition Holding Corporation. This investment is intended to partially fund the consideration for a merger agreement with H. J. Heinz Company, where Berkshire will acquire a package of preferred stock, common stock, and warrants in the holding company of Heinz. The preferred stock component of Berkshire's investment will carry a liquidation preference of $8 billion and a 9% dividend, with redemption provisions for both parties. This substantial equity commitment signals a major strategic investment by Berkshire Hathaway, underscoring its continued appetite for large-scale acquisitions and its long-term view on established businesses.
Key Highlights
- 1Berkshire Hathaway entered into an Equity Commitment Letter on February 13, 2013.
- 2The company committed to investing $12.12 billion in Hawk Acquisition Holding Corporation.
- 3This investment is part of the funding for the merger agreement between H. J. Heinz Company and Hawk Acquisition Holding Corporation.
- 4Berkshire will acquire a package of preferred stock, common stock, and warrants in the holding company.
- 5The preferred stock investment will have an $8 billion liquidation preference and a 9% dividend.
- 6The preferred stock has redemption rights for both Berkshire and the issuer under specific circumstances.