Dell Set to List on NYSE If Go-Public Plan Via Buyout Succeeds
(Bloomberg) -- Dell Technologies Inc. has applied to list its shares on the New York Stock Exchange as part of a plan to take the company public again through a buyout of a tracking stock.
If the listing is approved and Dell is able to complete a $21.7 billion deal involving the tracking shares known as DVMT, the company’s new Class C shares will trade under the symbol DELL, the company said in a regulatory filing Thursday.
Dell has been trying to convince shareholders of DVMT, the stock that tracks Dell’s stake in VMware Inc., to accept $109 a share in cash and Dell Class C stock. If Dell completes the deal, there will no longer be any outstanding shares of the tracking stock.
Some investors have balked at the proposed DVMT buyout, questioning how Dell arrived at a valuation of its shares that they see as too high.
Dell also said in the filing that, if the DVMT transaction is completed, it will seek to expand the board. As long as Michael Dell and his affiliated stockholders hold a majority of the voting power in the company, he and backer Silver Lake will try to increase the board to as many as 20 directors from the current six, according to the filing.
This week, Dell said that it’s also pursuing “a potential contingency plan” for a traditional initial public offering in case DVMT investors vote down the proposal. Under that alternative plan, Dell would become public again by selling its own shares to public market investors with the option to convert DVMT shares into Dell common stock.
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