Dell confirms plan to return to public markets

Dell confirms plan to return to public markets

The world's largest private technology company owns 80 percent of VMware and issued the tracking stock in 2016 to fund its purchase of EMC Corp, then the biggest stakeholder of VMware.

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.

The move marks the end of a strategic review that Dell has been conducting for several months as it has sought to consolidate its complicated ownership structure without overburdening its balance sheet, which bears around $50 billion in debt.

Dell Technologies Inc is proposing to become a publicly traded corporation again, according to a * a target="_blank" href="https://searchwww.sec.gov/EDGARFSClient/jsp/EDGAR_MainAccess.jsp?search_text=*&sort=Date&formType=1&isAdv=true&stemming=true&numResults=10&queryCo=Dell%20Technologies&numResults=10" *filing lodged with the SEC this morning.

Dell Technologies founder and CEO Michael Dell took his company private almost five years ago after more than two decades on the stock market in a deal worth $24 billion. VMware shares also rose 10 percent to $161.75.

Under the deal announced Monday, Class V stockholders can choose $109 in cash for each share they hold, or 1.3665 shares of Class C common stock.

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The tracking stock has almost doubled in value since it was issued, closing Friday at $84.58.

Dell has fostered tighter product integrations with VMware that help manage customer workloads with Dell hardware and VMware software.

After the deal, expected to close in the fourth quarter, holders of Dell's tracking stock will own between 20.8 percent and 31 percent of Dell depending on how many investors opt for cash, Dell said.

Michael Dell has turned to dealmaking to transform his company from a PC manufacturer into a broader seller of information technology services to businesses, ranging from storage and servers to networking and cyber security. Dell reported consolidated adjusted cash flow of $2.4 billion in its latest quarter, up by a third year-on-year.

The transaction needs shareholder approval.

Michael Dell, who owns 72 percent of the company's common shares, will remain as chairman and CEO. Its total debt has also gone down by $4.6 billion since the EMC deal.

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