Shareholders back Dell’s return to stock market

Company says 61% of shareholders excluding affiliates voted in favour of move

Michael Dell, chairman and chief executive of the namesake technology group, said the transaction would simplify the company’s capital structure and align investor interests. Photograph: Reuters

Michael Dell, chairman and chief executive of the namesake technology group, said the transaction would simplify the company’s capital structure and align investor interests. Photograph: Reuters

 

Dell Technologies won shareholder approval for a complex $23.9 billion (€20.9 billion) plan to buy back a tracking stock and list itself on the New York Stock Exchange, a move that will return the PC and technology behemoth to public markets for the first time since 2013.

The company said 61 per cent of shareholders excluding investors affiliated with Dell had voted in favour of the hotly-contested deal. A group of high-profile investors had initially resisted the transaction. After months of tense negotiations, Dell in November increased both the cash and stock portions of the offer, valuing the entire deal at $120 a share, up from the previous offer of $109.

Transaction

The payment ultimately made to shareholders will depend on the average share price of DVMT, a stock that is meant to track the value of Dell’s stake in the software group VMware.

Michael Dell, chairman and chief executive of the namesake technology group, said the transaction would simplify the company’s capital structure and align investor interests.

“This strengthens our strategic position, as we continue to deliver innovation, long-term vision and integrated solutions from the edge to the core to the cloud,” he added.

Shares of Dell are expected to begin trading on the New York Stock Exchange on December 28. Shares of DVMT rose to $105.14 in trading on Tuesday morning. – Copyright The Financial Times Limited 2018