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Dell set to go public again

(Image credit: Image Credit: Flickr / Toshiyuki IMAI)

Dell is buying back VMware tracking stock and returning to the market, the company confirmed this Tuesday. In a statement issued by the company, it was said that it will be buying back the stock for $120 per share.

That puts the total value of the deal at $23.9 billion. Dell is expected to return to the stock market before the year’s end, on December 28.

According to TechCrunch (opens in new tab)almost two thirds (61 per cent) of shareholders voted for the deal.

“With this vote, we are simplifying Dell Technologies’ capital structure and aligning the interests of our investors,” Dell said in a statement.

Dell’s spokesperson explained the company’s return to the stock market: “Portions of Dell Technologies have been publicly traded through, for example, VMware and the tracker stock. The NYSE:DELL Class C shares will enable investors to invest in the full breadth of Dell Technologies company.” From December 28 and into the future, Dell’s stocks will be sold on the New York Stock Exchange under the ticker DELL.

Dell first flirted with the idea in July this year (opens in new tab), when it was reported that the company was planning on announcing this acquisition. Back then, it was said that the cash-and-stock deal would eliminate the tracking stock but it would not affect VMware. This was one of a number of options that were being looked at, including a reverse merger with VMware.

TechCrunch also says that there was ‘drama’ before the vote, when activist investor Carl Icahn sued the company after it announced a $21.7bn price for the tracking stock.

Image Credit: Flickr / Toshiyuki IMAI

Sead Fadilpašić is a freelance tech writer and journalist with more than 17 years experience writing technology-focussed news, blogs, whitepapers, reviews, and ebooks. And his work has featured in online media outlets from all over the world, including Al Jazeera Balkans (where he was a Multimedia Journalist), Crypto News, TechRadar Pro, and IT Pro Portal, where he has written news and features for over five years. Sead's experience also includes writing for inbound marketing, where he creates technology-based content for clients from London to Singapore. Sead is a HubSpot-certified content creator.