Dell to buy out VMware tracking stock in move to go public again

Dell Technologies Inc said on Monday it would buy the tracking stock of VMware Inc in a cash and stock deal, taking a step closer to a return to the public market and ending a months-long review of its business.
A logo of Dell Technologies is seen at the Mobile World Congress in Barcelona, Spain February 28, 2018. REUTERS/Yves Herman

A logo of Dell Technologies is seen at the Mobile World Congress in Barcelona, Spain February 28, 2018. REUTERS/Yves Herman

Dell, which owns 80 percent of VMware, issued the tracking stock in 2016 to fund its purchase of data storage firm EMC Corp.

The elimination of the tracking stock is aimed at simplifying Dell’s complex ownership structure without overburdening its balance sheet, which bears around $50 billion in debt.

Dell, which owns 80 percent of VMware, issued the tracking stock in 2016 to fund its purchase of data storage firm EMC Corp.

The elimination of the tracking stock is aimed at simplifying Dell’s complex ownership structure without overburdening its balance sheet, which bears around $50 billion in debt.

Dell said it will list its Class C shares on the New York Stock Exchange following the completion of the deal.

The transaction represents a premium of 28.9 percent to closing price of Dell’s tracking stock on Friday. The stock was up 13.5 percent at $96 in premarket trading, while VMware shares rose 14.3 percent to $168.

The cash component of the offer will be financed by a one-time $11 billion special dividend that VMware will pay out pro-rata to its shareholders.

After the deal, VMware shareholders will own between 20.8 percent and 31 percent of Dell depending on how many investors opt for cash, Dell said.

Private equity firm Silver Lake helped bankroll Dell CEO Michael Dell in taking the company private in 2013 in a $24.9 billion leveraged buyout.

Reuters

Other News

Vietnam targets at least 10 large strategic technology firms by 2030

Vietnam targets at least 10 large strategic technology firms by 2030

Deputy Prime Minister Ho Quoc Dung has signed a decision approving a plan to develop large domestic strategic technology enterprises in the 2026–2030 period, aimed at advancing digital infrastructure, digital human resources, digital data, strategic technologies and cybersecurity.

Protecting users crucial in building digital trust: Experts

Protecting users crucial in building digital trust: Experts

In Vietnam, digital transformation in the finance and banking sector is accelerating cashless payments, expanding access to financial services, improving market transparency and supporting economic growth and macroeconomic management.

Fostering skilled workforce for innovation era: experts

Fostering skilled workforce for innovation era: experts

Experts said close coordination among State management agencies, research institutes, universities, and businesses will improve training quality and serve the dual goals of quality education and practical research application.

Startup forum bridges Silicon Valley and local innovation ecosystem

Startup forum bridges Silicon Valley and local innovation ecosystem

The University of Economics Ho Chi Minh City (UEH), Saigon Asset Management (SAM), and Plug and Play Tech Centre co-hosted the “From Vietnam to Silicon Valley” forum, exploring AI innovation, venture capital, and pathways to integrate Vietnam’s startup ecosystem with Silicon Valley and global markets.

Experts call for stronger action against fake news online

Experts call for stronger action against fake news online

Experts have warned that fake news, misinformation and harmful online content are increasingly shaping public perceptions, particularly among young people, and stressed the need for stronger legal safeguards, technology tools and wider dissemination of credible information to tackle the problem effectively.

Protecting digital future in post-quantum, AI era

Protecting digital future in post-quantum, AI era

Participants highlighted the importance of building a proactive, synchronised and sustainable national cybersecurity ecosystem through closer cooperation among regulators, technology firms, research institutions and cybersecurity experts.

Vietnam attends SAHA 2026 defence, aerospace exhibition in Türkiye

Vietnam attends SAHA 2026 defence, aerospace exhibition in Türkiye

Vietnam’s participation in SAHA 2026 International Defence & Aerospace Exhibition in Istanbul reflects the country’s consistent policy of enhancing international defence integration and promoting defence industry cooperation towards self-reliance, self-strengthening, modernisation and dual-use development.

SK Group partners to build AI ecosystem in Vietnam

SK Group partners to build AI ecosystem in Vietnam

SK Innovation and SK Telecom signed MoUs with Nghe An province and the National Innovation Centre of Vietnam to advance AI ecosystem development and support the country’s long-term growth strategy.

Vietnam Research Excellence Fellowship for 2026-2030 approved

Vietnam Research Excellence Fellowship for 2026-2030 approved

Under the Vietnam Research Excellence Fellowship (VREF) for the 2026–2030 period, PhD students are identified as a core research force directly contributing to breakthroughs in sci-tech and innovation. Investing in top-tier doctoral candidates is more than workforce development, but a high-stakes strategic bet to forge a cohort of world-class scientists and technologists who can power Vietnam’s long-term economic ambitions.