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.
