BlackBerry seems to be calling off its sale. The company has entered into an agreement with Fairfax Financial Holdings – and other institutional investors – raising USD 1 billion private placement of convertible debentures.

Fairfax has agreed to acquire USD 250 million principal amount of the Debentures. The transaction is expected to be completed within the next two weeks.

Upon the closing of the transaction, John S. Chen (currently a director of Wells Fargo & Company) will be appointed Executive Chair of BlackBerry’s Board of Directors and, in that role, will be responsible for the strategic direction, strategic relationships and organizational goals of BlackBerry.

In addition, Thorsten Heins will step down as Chief Executive Officer at closing and Mr. Chen will serve as Interim Chief Executive Officer pending completion of a search for a new Chief Executive Officer.

“I am pleased to join a company with as much potential as BlackBerry,” said Mr. Chen. “BlackBerry is an iconic brand with enormous potential – but it’s going to take time, discipline and tough decisions to reclaim our success. I look forward to leading BlackBerry in its turnaround and business model transformation for the benefit of all of its constituencies, including its customers, shareholders and employees.”