Dell’s Shareholders Approves The $25 Billion Buyout
Dell founder Michael Dell and private equity firm Silver Lake has been chasing after a goal to take Dell Inc. private for the last 14 months. Michael Dell and Silver Lake has been working on convincing shareholders in the Dell Inc. to take the company private in a leveraged buyout (LBO). The deal got a bit stalled after Carl Icahn got involved in offering an idea of his own. This forced Michael Dell to increase his price.
Earlier today, a shareholder vote took place at a special meeting in Round Rock, Texas. Dell’s shareholders approved the buyout proposal that has a value of about $25 billion.
Shareholders of Dell are going to receive a total of $13.88 per share. This includes $13.75 per share of common stock plus a special dividend worth 13 cents per share. The approval of the deal still depends on a “preliminary vote tally.” Dell has been a public company for around 25 years.
“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,” stated Michael Dell.
The LBO is expected to happen by November 1st and Dell’s shares are expected to keep trading until then. Michal Dell will own around 75% of the company after the merger is cleared.