Tesla's CEO Elon Musk proposed to acquire SolarCity back in June. Musk also happens to be SolarCity's chairman and cousin to its CEO Lyndon Rive.
The Wall Street Journal confirmed that an all-stock agreement values SolarCity at around $2.6 billion, or $25.83 a share. SolarCity's shareholders will receive 0.11 shares of Tesla's stock for each one share of SolarCity they own.
SolarCity's stock closed for trading on Friday at $26.70. During Monday's pre-market trading session, it was trading lower by more than 5 percent at $25.16, representing a discount to the merger valuation.
However, the regulatory filing also calls for a 45-day "go-shop" period for SolarCity, after which a "no-shop" period will follow.
SolarCity also issued preliminary second-quarter operating metrics and an update to its full-year fiscal 2016 guidance. The company said that its total Megawatts (MW) installed base for the second quarter totaled 201 MW and exceeded its prior guidance of 185 MW.
SolarCity also lowered its full-year fiscal 2016 guidance for MW installed to 900 to 1,000 MW from a prior range of 1,000 to 1,100 MW. The company attributed its downward revised outlook to lower than expected residential bookings activity throughout the first half of the year that.
The closing of the merger is still subject to conditions.
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