The largest PC maker Dell has announced to go private by a $24.4 billion acquisition deal led by its Founder Michael Dell with technology investment firm Silver Lake and Microsoft Corp.
In the biggest turnaround strategy, Dell plans to take itself private that hopes to set it on its start-up roots, will buy all outstanding shares at around USD 24.4 billion.
Dell stockholders will receive $ 13.65 a share in cash they hold – a 25 percent premium over Dell’s stock traded before January 11, 2013, when going-private rumor leaked, the company said in a statement.
Michael S. Dell will contribute his stake of roughly 14 percent toward the transaction and will contribute. Silver Lake is expected to contribute about $1 billion in cash, while Microsoft will loan an additional $2 billion.
The company further said the deal will be financed through a combination of cash and equity contributed by Michael Dell with his 16 percent stake in the company, additional cash by MSD Capital, $1 billion cash by Silver Lake, a $2 billion loan from Microsoft as well as $11 billion and $12 billion debt financing from BofA Merrill Lynch, Barclays, Credit Suisse and RBC Capital Markets.
The control will be under Michael Dell who will continue his position as Chairman and Chief Executive Officer and will maintain to revive itself after years of decline.
Meanwhile, a 45-day “go-shop” process will be conducted by the company over merger agreement to evaluate and potentially enter into negotiations with parties that proposes higher offers.