Dell details private equity buyout
(02-06 11:32)
Dell unveiled plans to go private Tuesday in a US$24.4 billion deal, giving founder Michael Dell a chance to reshape the former number one PC maker away from the spotlight of Wall Street.
"I believe this transaction will open an exciting new chapter for Dell, our customers and team members,'' Michael Dell said in unveiling the deal with equity investment firm Silver Lake, backed by a US$2 billion loan from Microsoft, AFP reports.
The company said it had signed "a definitive'' agreement to give shareholders US$13.65 per share in cash -- a premium of 25 percent over Dell's closing share price on January 11, before reports of the deal circulated.
The move, which would delist the company from stock markets, could ease some pressure on Dell, which is cash-rich but has seen profits slump, as it tries to reduce dependence on the slumping market for personal computers.
The plan is subject to several conditions, including a vote of unaffiliated stockholders.
It calls for a "go shop'' period to allow shareholders to seek a better offer.
The company founder said Dell has made progress in its turnaround strategy ''but we recognize that it will still take more time, investment and patience, and I believe our efforts will be better supported by partnering with Silver Lake in our shared vision.''
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