AUSTIN ? Dell confirmed Tuesday that CEO Michael Dell and investment firm Silver Lake are paying $13.65 per share to take the company private, in a deal valued at $24.4 billion.
Dell, who owns about 14 percent of his company?s common shares, said Microsoft is also kicking in a $2 billion loan, CNET News.Com reported.
The deal, which is subject to regulatory and shareholder approval, should be wrapped up before the close of Dell’s fiscal second quarter, which ends in July. Following completion of the transaction, Michael Dell will continue to lead the company as CEO. He also will maintain a significant equity investment in the company by contributing his shares of Dell to the new company, as well as by making a “substantial,” additional cash investment.
Here’s what Michael Dell had to say today, via press release:
I believe this transaction will open an exciting new chapter for Dell, our customers and team members. We can deliver immediate value to stockholders, while we continue the execution of our long-term strategy and focus on delivering best-in-class solutions to our customers as a private enterprise.
Dell has made solid progress executing this strategy over the past four years, 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.
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. We are committed to delivering an unmatched customer experience and excited to pursue the path ahead.
Shares in Dell have soared since details first emerged about a possible deal. The offer price represents a 25 percent premium over the company’s closing price of $10.88 on January 11, the last day before Bloomberg first reported a potential deal. Shares recently grew a fraction to $13.36, trading below the offer price, which indicates shareholders likely aren’t expecting a higher bid.
