Computer manufacturer Dell Inc will once again become a private company owned by its founder, Michael Dell, under a long-anticipated 24.4-billion-dollar delisting deal announced Tuesday.
Dell, who is currently chairman and chief executive, has long telegraphed the move, which will allow the company to focus on its struggling business model without having to appease shareholders interested in short-term gain.
"I am committed to this journey and I have put a substantial amount of my own capital at risk together with Silver Lake, a world-class investor with an outstanding reputation," said Dell in a statement released by the company. "We are committed to delivering an unmatched customer experience and excited to pursue the path ahead."
Legally, the move represents the formation of a partnership between Dell and Silver Lake, a global technology investment firm, noted the company in a statement.
Investors will be able to receive 13.65 dollars for each share they own, a 25-per-cent increase over the company's January 11 closing price of 10.88 dollars. The deal is expected to close after Dell's second 2014 fiscal quarter.
Dell's board of directors agreed to the merger based on the recommendations of a special committee.
Michael Dell owns about 14 per cent of the company's common shares and will continue in his current jobs while the deal - which also allows a period during which other business options can be considered - goes forward.
Dell founded the company in his college dorm room in 1984 at the start of the PC era, turning it into the world's largest PC maker with a market capitalization that at one time was worth more than 100 billion dollars.
Hispanic #1 Breaking News for Entrepreneurs, Professionals and Small Business Owners - HispanicBusiness.com
OCTOBER 30, 2014
|Customer Service||Policy||Advertise||Site Tools|
|HispanicBusiness Services||Editorial Guidelines||Ad Specifications||Magazine Archive|
|List Rental Agreement||About Us||Media Kits||Post Your Event|
|HireDiversity Job Search||Editorial Calendar||Research|
© 2014 HispanicBusiness Inc. All Rights Reserved.