Shareholders
of Dell have agreed with founder and CEO of Dell Corporations in his bid to
take the company private in the face of crash in PC market.
Dell thinks
he will be able to revive the fortunes of the PC maker which at the moment is
dwindling if it can take the company private. A deal worth $24.9 billion has
been agreed for the buyout of Dell Corporations.
The deal is being
supported by Silver Lake Partners. Dell had an opposition in investor Carl
Icahn about buying out the company but that is now behind as Michael Dell now
focuses on how to take Dell forward.
Dell
shareholders will receive $13.75 in cash for each share of Dell common stock
that they own. The official votes of the shareholders for and against the
buyout has not been released but there are rumours that 65% of shareholders
supported Michael Dell’s proposal.
“I am pleased
with this outcome and am energized to continue building Dell into the
industry’s leading provider of scalable, end-to-end technology solutions,”
Chairman and CEO of Dell, Michael Dell said.
“As a private
enterprise, with a strong private-equity partner, we’ll serve our customers
with a single minded purpose and drive the innovations that will help them
achieve their goals.” he said.
Since Michael
Dell returned as CEO in 2007, Dell’s stock has dipped more than 40%. Last
month, Dell also reported a 72% drop in profit for the second quarter compared
to the previous year. It is expected that Mr. Dell will be able to take more
risks now without shareholders’ interference.
It is
expected that the deal will be completed in two months’ time after all the
regulatory procedures.
This will be
the third major buyout in the tech industry in September after telecoms
company Verizon recently bought Vodafone’s 45% stake in its company for $130
billion. Microsoft also bought the mobile unit of the main company on its Windows Phone OS, Nokia for $7.2 billion.
Posts
Michael Dell to buy his PC Company back in a $24.9bn deal