PIF of Saudi Arabia did not interest in helping Allen Musk while taking Tesla Pvt

PIF of Saudi Arabia did not interest in helping Allen Musk while taking Tesla Pvt
PIF of Saudi Arabia did not interest in helping Allen Musk while taking Tesla Pvt

Saudi Arabia's Public Investment Fund (PIF), despite acquiring minority stake in the company, is now funding the $ 72 billion (about Rs 5 lakh crore) deal to Tesla CEO Elon Musk for taking US private car manufacturer private No interest has been shown till This year, two sources familiar with this matter said.

The 47-year-old speculator and architect staggered money related markets on Tuesday when he said on Twitter that he was thinking about a take-private arrangement for Tesla, a car producing pioneer that built up the world's first extravagance all-electric vehicle auto. He also said that he has secured the funding for the proposal without providing details.

Investors and analysts saw PIF as a natural financing partner. In addition to collecting less than 5 percent stake in Tesla, the sovereign wealth fund has put billions of dollars in technology investment, including $ 45 billion (about 3.1 lakh crore) in the Softbank Group Corp. Fund in five years.

However, a source familiar with PIF's strategy said that he was not currently involved in any funding process for Tesla's private-private deal.

A second source close to the situation also said that PIF was not taking part in any such scheme in this phase. This source said that the Saudi fund will not make such investments without seeking guidance before SoftBank. According to different sources talking to Reuters last week, Softbank is not currently following the investment in Tesla after its investment in GS Cruise per year.

The pressure on the musk is increasing to produce details of its financing plan.

Bloomberg said on Sunday that the PIF is in talks that it can become an important investor in Tesla as part of a private plan, but has not made any firm decision while referring to those who have knowledge of fund schemes.

Sources told Reuters on Thursday that Tesla's board has not got a detailed funding plan from Musk and is seeking more information.

Another source said that the board decided to hire advisers on the basis of the expansion on the funding scheme received from Musk and to decide on the formal review of Mask private-private proposal in the coming days.

Sources requested anonymity because the discussions are confidential. A spokesman for PIF was not immediately available for comment. A Tesla spokesman refused to comment on behalf of the company and Musk.

The US Securities and Exchange Commission has reached Tesla to get some information about Musk's affirmation on Twitter that subsidizing for his proposed bargain was "anchored", the Wall Street Journal wrote about Wednesday.

Tesla is confronting a represent the deciding moment crossroads in its eight-year history as an open organization, as rivalry from European automakers is ready to strengthen with new electric vehicles from Mercedes, Audi, BMW and different opponents.

Tesla Pvt will remove pressure from the masks coming from the hedge fund that will leave the issues of production and negative cash flow in the company's stock. It will also remove the company from the glare of Wall Street which comes with public reporting quarterly earnings.

In a letter to employees on Tuesday, Musk suggested for shareholders to sell their shares for investors in a private Tesla for $ 420 (about 29, 20000).

Musk has also said that he will be looking to keep Tesla's ownership in about 20 percent of a purchase deal, and that a special purpose vehicle, such as the aerospace company is present in SpaceX, allows Tesla shareholders to stay in the investment If they choose then

Investment bankers and analysts have responded with suspicion so far, it would be difficult to say to Reuters that it would be difficult for Musk, whose Net Worth Forbes has been invested at $ 22 billion (about 1.5 lakh crore) Tesla benefits given to increase the equity and loan financing required for the transaction is not changing.

Some analysts have suggested that Masks can deal with Tesla's top shareholders, such as Fidelity Investments and Tenant of China, so that they can put their equity shares in the deal, which reduces the amount of money raised.

However, on the issue of buying small shareholders, the bargain structure will come up with a lot of logical and legal challenges, analysts have said.
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