Dell prepares to go public following VMware deal approval
- 12 December, 2018 05:41
Michael Dell (Dell Technologies)
Dell Technologies has received shareholder approval for its earlier announced deal to buy back shares tied to its interest in software maker VMware, paving the way for it to return to the market.
The tech giant said its Class C shares are expected to begin trading on the New York Stock Exchange on 28 December.
“We appreciate our stockholders' support,” said Michael Dell, chairman and CEO, Dell Technologies. “With this vote, we are simplifying Dell Technologies' capital structure and aligning the interests of our investors.
“This strengthens our strategic position, as we continue to deliver innovation, long-term vision and integrated solutions from the edge to the core to the cloud.
“We've created Dell Technologies to be our customers' most trusted partner in their digital transformation.”
The company sweetened the offer for the VMware tracking stockholders to US$23.9 billion from US$21.7 billion in November, helping it win backing from shareholders, including Carl Icahn, who had opposed the initial offer.
Icahn, who owns 9.3 per cent stake in Dell tracking stock, along with other hedge fund investors had opposed the first offer from Dell, saying it massively undervalued the tracking stock.
However, after Dell raised the offer, Icahn dropped his proxy fight and lawsuits and said the computer maker has secured enough investor support.
The deal, announced in July, allows Dell to become a publicly listed company without an initial public offering, which would likely have involved grilling by stock market investors over Dell's US$52.7 billion debt pile.
“We believe that Dell Technologies is best positioned to succeed in today's data-driven economy thanks to the unique collection of businesses that Michael and his team have assembled and look forward to remaining long-term investors in the company," added Egon Durban, managing partner and managing director of Silver Lake.
"It is exciting to be able to now share the value creation across all of the businesses and assets of Dell Technologies with public investors, and we look forward to them joining us on this journey."
(Reporting by Sonam Rai in Bengaluru; Editing by Arun Koyyur)