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

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.

Strategic tech must address practical challenges: PM

Strategic tech must address practical challenges: PM

Prime Minister Pham Minh Chinh on March 28 said strategic technologies must tackle Vietnam’s practical challenges, while chairing a meeting of the Government’s Steering Committee for science and technology, innovation, digital transformation, and Project 06.

Ho Chi Minh City sets sights on becoming semiconductor hub

Ho Chi Minh City sets sights on becoming semiconductor hub

Ho Chi Minh City is stepping up efforts to attract investment from global leading groups and companies in the fields of electronic components, semiconductors and chip manufacturing as it seeks to position itself as a leading semiconductor industry hub in both the region and the world. 

Ho Chi Minh City launches upgraded technology exchange platform

Ho Chi Minh City launches upgraded technology exchange platform

The upgraded platform represents a comprehensive shift from a simple information-sharing model to a managed online technology trading system, enabling monitoring and measurement of real transaction outcomes. It is built on three pillars, namely new tradable technology products, a modern digital platform, and an improved operational model.

AI – unmissable opportunity for Vietnam: Experts

AI – unmissable opportunity for Vietnam: Experts

AI also emerges as a key enabler for Vietnam's ambition to build financial and technology hubs. Applications can boost efficiency, automate workflows, cut costs, and sharpen data analytics, which are essential pillars of a modern financial system.

PM calls for accelerated space technology development in Vietnam

PM calls for accelerated space technology development in Vietnam

Vietnam aims by 2030 to achieve a mid-level position in space science and technology development within Southeast Asia, and after 2030 to build national capabilities to independently develop satellite technologies and apply space data to address global challenges and national security needs.

High-level forum advances Vietnam–US technological cooperation

High-level forum advances Vietnam–US technological cooperation

A high-level executive leadership forum focusing on strengthening Vietnam - US relations through technology cooperation was jointly held in Washington D.C. on March 11 by the Embassy of Vietnam in the US, the Weatherhead East Asian Institute of Columbia University, and the US -ASEAN Business Council (USABC). 

AI Law takes effect, anchors national governance framework

AI Law takes effect, anchors national governance framework

While many countries are still drafting policy blueprints or issuing non-binding guidance, Vietnam has moved ahead with a standalone Law on Artificial Intelligence (AI), effective from March 1, placing it among a select group of nations to adopt dedicated AI legislation at the parliamentary level. 

Vietnam International Defence Expo 2026 preparations move into high gear

Vietnam International Defence Expo 2026 preparations move into high gear

Vietnam International Defence Expo 2026, themed “Peace, Friendship, Cooperation and Development,” will be organised on a larger scale, featuring a wide array of weapons and technical equipment alongside product exhibitions, seminars and panel discussions, drills, live field demonstrations, and business networking activities.

Ministry requests urgent measures to counter UAVs threatening aviation safety

Ministry requests urgent measures to counter UAVs threatening aviation safety

Ministry of Construction requested the Ministry of National Defence, the Ministry of Public Security and provincial and municipal steering committees for counter-terrorism to strengthen the management, inspection and supervision of UAVs and other aerial devices, ensuring strict compliance with Decree No. 288/2025/ND-CP and relevant legal regulations.