Michael Dell, the founder of Dell, had put forward a proposal earlier this year to take the company private. The process to win the bid didn’t prove to be easy. Dell’s multi-billion offer received tough competition from activist investor Carl Icahn. A few weeks back, Ichan finally dropped out of the race, allowing Dell’s bid to go through. Last month, the company’s shareholders voted on the proposal and approved it. The company Dell will now be acquired by Michael Dell along with Silver Lake Partners, a global technology firm. The regulatory hurdles are finally out of the way, as regulators have cleared the $25 billion buyout plan.
Despite the fact that the deal has received regulatory approval, the transaction won’t be completed until the third quarter of 2014. Until the transaction closes, Dell’s shares will continue to be publicly traded. Under the new ownership struction, Michael Dell will own 75 percent of the company he founded back in 1984 in his dorm room at the University of Texas. The remaining will be owned by Silver Lake Partners. Microsoft has also contributed funds for this deal. For each share of Dell common stock that they own, the company’s shareholders will receive $13.75 in cash. They will also receive a special cash dividend of $0.13 per share.
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