Chat with us, powered by LiveChat
Dell shareholders approve Michael Dell’s buyout offer

Dell shareholders approve Michael Dell’s buyout offer

dell-logo

Dell’s shareholders have approved an offer by Michael Dell to buy out the business for a total of $24.9 billion USD which, according to preliminary reports, has been approved by 65% of investors. The final package offered which was agreed by shareholders was $13.75 USD per share with an additional $0.13 USD dividend. This buy out was only possible with the help of investment firm Silver Lake Partners, which is also party to the buy out offer along with Michael Dell.

The buy out offer first announced by Michael in February has not been a smooth ride, with some investors having expressed their dissatisfaction with the purchase price offered. There were several court cases filed prompting Michael and Silver Lake investment firm to increase their buy out offer.

Founder Michael Dell hopes to shift the company greatly more towards enterprise services, and he feels this can best be achieved as a private firm arguing that in order to turn around the company, there will have to be some major changes which will likely impact on the company’s profits for several years.

Michael Dell’s buy out comes at a point when Dell’s profits are shrinking dramatically at a time where shipments of personal computers are falling as sales of tablets and smartphones are accelerating. Dell hopes by taking the company he founded back as a private firm will allow it to restructure and revitalise itself without the scrutiny of shareholders and Wall Street investors.

Sharing

Leave your comment

Pin It on Pinterest

Share This