Dell to make a re-entry on the stock market

Posted on Monday, Jul 02 2018 @ 16:26 CEST by Thomas De Maesschalck
Five years ago, Michael Dell and private equity fund Silver Lake took Dell private to escape from the quarter-to-quarter mania of Wall Street, and to expand into new market segments. But now the PC firm is planning to make a re-entry on the stock market. The deal is designed to reduce Dell's debt load, which stood at $52.7 billion at the end of the first quarter.

As Bloomberg reports, Dell will appear on the NYSE via the buyout of its tracking stock, DVMT, in a cash and share-swap deal valued at $21.7 billion.
The shares, worth about $17 billion as of Friday, were created to mirror the value of software maker VMware Inc., in which Dell has a controlling stake. The move aims to simplify Dell’s tangled corporate structure without weighing on its balance sheet.

As part of the deal, VMware will pay DVMT shareholders an $11 billion special cash dividend and Dell will offer more shares -- or cash -- to make up the difference. Dell Technologies Class C common stock will become publicly listed on the New York Stock Exchange.

About the Author

Thomas De Maesschalck

Thomas has been messing with computer since early childhood and firmly believes the Internet is the best thing since sliced bread. Enjoys playing with new tech, is fascinated by science, and passionate about financial markets. When not behind a computer, he can be found with running shoes on or lifting heavy weights in the weight room.

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