Dell Technologies Confirms Deal That Would Mark Return to Public Markets
July 02 2018 - 8:06AM
Dow Jones News
By Allison Prang
Dell Technologies Inc. has offered to buy shares that track its
interest in software firm VMware Inc., a move that would mark a
re-emergence into the public markets for Dell.
PC maker Dell Technologies said Monday that it plans to buy the
publicly traded DVMT, which tracks VMware. Each share of Dell
Technologies Class V stock will be converted into about 1.37 shares
of Class C common stock, Dell Technologies said. The implied value
of the Class V shares is $109 a share, it added.
Shares in DVMT, which last closed at $84.58, rose 13% in
premarket trading.
The Wall Street Journal had reported earlier that Dell planned
to buy the DVMT shares and could announce those plans as soon as
Monday.
Once that deal is completed, the Dell Class C shares will be
listed on the New York Stock Exchange. Dell founder Michael Dell
and investment firm Silver Lake took Dell private in a leveraged
buyout in 2013 for about $25 billion.
In a separate announcement Monday, VMware said it was giving an
$11 billion special dividend to shareholders tied to the completion
of the Dell Technologies deal. VMware also said it would remain an
independent public company.
Write to Allison Prang at allison.prang@wsj.com
(END) Dow Jones Newswires
July 02, 2018 07:51 ET (11:51 GMT)
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