Vote Paves Way for Dell to Trade Publicly Again
December 11 2018 - 10:41AM
Dow Jones News
By Micah Maidenberg
Dell Technologies Inc. is set to begin trading again as a public
company later this month.
Shareholders of a stock that tracks Dell's interest in software
maker VMware Inc. on Tuesday voted to approve a transaction that
will allow Dell to simplify its complex ownership structure and
return to the public markets.
Under the terms of the deal, Dell will buy out shareholders in
the tracking stock, known by its ticker DVMT, allowing Dell to
trade under a new ticker as a PC and data-storage firm.
Dell said Tuesday that more than 61% of shareholders in the
tracking stock voted in favor of the transaction, which is expected
to close Dec. 28. One class of Dell shares will also begin trading
on that day on the New York Stock Exchange.
"With this vote, we are simplifying Dell Technologies' capital
structure and aligning the interests of our investors," Michael
Dell, the company's chief executive, said in prepared remarks.
Last month, the company lifted its offer to holders of the
tracking stock, some of which thought Dell's initial offer
undervalued their shares. The company faced pressure from activist
investors, including Carl Icahn.
Dell's final offer had an implied value of about $24 billion,
including $14 billion in cash and the remainder in shares of the
future publicly traded Dell. The initial offer had an implied value
of about $22 billion.
In 2015, Dell set up the DVMT tracking stock to help it finance
its takeover of the data-storage company EMC Corp., then the owner
of most of VMware. Tracking stocks let companies expose business to
public markets, potentially increasing their value and
visibility.
Dell went private in $24.4 billion leveraged buyout in 2013.
That deal was led by Mr. Dell, the company's founder, and
investment firm Silver Lake.
Write to Micah Maidenberg at micah.maidenberg@wsj.com
(END) Dow Jones Newswires
December 11, 2018 10:26 ET (15:26 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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