Tuesday, 3 July 2018

Dell may become a public company again.

Dell to acquire tracking stock to return to the public stock market.

In a move that could once again make it a publicly traded company, computing and storage giant Dell Inc. plans to announce an acquisition of its publicly traded tracking stock Dell Technologies (DVMT) which it uses to track VMware.

The cash-and-stock deal will eliminate the tracking stock but it will not affect VMware. Dell and its board have been examining a number of options over the past few months including going public and pursuing a reverse merger with VMware.

According to people familiar with the upcoming deal, the company will offer DVMT shareholders significantly more of its privately held shares (DHI common stock) than cash. As a result of the deal, Dell will become a publicly traded stock and DVMT will be acquired at a premium in line with standard transactions.

Dell Technologies will also gain more direct control over VMware. Currently 80 per cent of the company is controlled by the holders of the Dell tracking stock and Dell's DHI shareholders.

By Anthony Spadafora.
Full story at ITpro Portal.

No comments:

Post a Comment