Dell Technologies Edges Closer To Going Public
Dell surprised the world when back in 2013 when it announced that its founder, Michael Dell along with private equity firm Silver Lake Partners, would take the corporation private in a $25 billion move.
Now five years later, they aiming to go public once again, thirty years after its first IPO in 1988.
Dell must get buy-in from top shareholders of its VMware tracking stock, DVMT (NYSE:DVMT), by offering somewhere around $120 to $130 per share which represents a reasonable premium over the $105 the tracker is currently trading at. Earlier this June, an offer of $109 per share was presented, which most investors scoffed at, and herein lies the problem. Dell can acquire all of the tracking stock and effectively go public again without a formal IPO, but if large shareholders won’t let go then its a non-starter.
The company has been reportedly working with additional financial institutions to secure funding the sweeten the pot to sway any holdouts that weren’t already enticed. Its possible an offer as high as $140 per share will be needed to persuade shareholders to green light the move.
Dell acquired VMware after its landmark purchase of EMC in 2015. The deal saw Dell pay $67 billion in total for EMC which was the largest tech merger at the time, and still claims that title to this day. The move also saw the PC OEM reorganized with a new parent company, Dell Technologies.
VMware (NYSE:VMW) shares are controlled by Dell which owns roughly 83 percent of the company.