Dell Receives Regulatory Clearances to Go Private; Transaction to Complete in October
In a press release, Dell has announced that it has received regulatory clearances to go private.
Dell today announced that it has received all necessary pre-merger regulatory clearances for the consummation of the merger transaction in which Michael Dell, Dell’s Founder, Chairman and CEO, will acquire Dell in partnership with global technology investment firm Silver Lake Partners.
The US$24.9 billion transaction is expected to close before the end of the third quarter of Dell’s 2014 financial year - which is by the end of October.
Just last month, shareholders of Dell approved the offer made by Michael Dell and Silver Lake Partners to take the company private. They will receive US$13.75 per share and an additional US$0.13 per dividend. For many months prior, the buyout was met with resistance from investor Carl Ichan and investment firms Southeastern Asset Management and T. Rowe Price.
By going private, Dell will no longer be listed on the stock exchange, which also means it doesn’t need to deal with quarterly earning reports. Michael Dell, who will own 75% of the new company, hopes that by going private, Dell is able to return to its roots and find its entrepreneurial spirit, and bring innovation back to the PC, mobile, and enterprise markets.