[ad_1]
Dell Technologies is exploring the possibility of a traditional IPO and plans to interview several banks this week for underwriting roles, according to an article in the Wall Street Journal.
As a result, Dell postponed a roadshow to sell the buyout transaction that was due to start this week, according to the Wall Street Journal report.
According to the Wall Street Journal, the traditional IPO route would replace the public process through a Dell VMware tracking stock acquisition project.
The newspaper said the bank interview could be seen as a "tactic to pressure investors" to support VMware's inventory tracking operation.
Dell said it does not comment on the Wall Street Journal report.
Dell Technologies chief financial officer Tom Sweet told Wall Street analysts earlier this month that the company is planning a series of roving meetings with investors in both individual and collective environments across the country. VMware tracking inventory.
Under the terms of the proposed repurchase, the shareholders of the DVMT Tracking Share would exchange each DSM Tracking stock for 1.3665 common shares of Dell Technologies Class C or $ 109 per share for a total of $ 9 billion. .
The proposed $ 21.7 billion share buyback would mark Dell Technologies' return to the public market – five years after Dell's founder and CEO, Michael Dell, privatized the company in one of the largest repurchases of private shares.
As part of the agreement, the VMware Board of Directors voted in favor of declaring an $ 11 billion cash dividend to all VMware shareholders, subject to the conclusion of the transaction.
Upon completion, VMware will retain its status as a publicly traded company, with Dell continuing to own 81% of the common shares of VMware.
Bob Venero, CEO of Holbrook, the New York-based solution provider, Future Tech, a Dell EMC Titanium partner, said the traditional operation or VMware tracking operation was beneficial for both partners.
"From the point of view of a partner or a client, I do not see any of these options more advantageous than the other," he said. "The important thing is to keep the DNA of tight integration between Dell and VMware, which benefits customers and partners."
Venero said the tight alignment between Dell and VMware has proven to be a finely tuned engine, which generates better solutions for IT buyers and, as a result, drives growth in sales of products and services. two companies on the channel.
"In any case, there is no doubt that Michael and his management team will continue to drive their agenda around a fully integrated technology stack, namely Dell EMC and VMware," Venero said.
Since Dell's acquisition of EMC and VMware in September 2016, which cost Dell $ 67 billion, Future Tech's Dell EMC and VMware sales are growing at double-digit rates, Venero said.
"The sales trend of Dell EMC VMware is on the rise and to the right, where we all hoped it would be when Dell acquired EMC," said Venero. "We are confident that the trend will continue."
Dell's chief financial officer, Sweet, told analysts earlier this month that VMware would generate $ 700 million in additional bookings in fiscal year 2019 because of its affiliation with Dell. "We continue to see strong cross-selling opportunities by leveraging both Dell Technologies and VMware sales forces," he said.
In the announcement of the VMware buyout proposal, Dell said in a statement that VMware had "flourished as part of the Dell Technologies family and had sparked a craze and strategic relevance for all customers.
In addition, Dell stated that after the completion of the transaction, it looks forward to the "independence, strategy, and capital allocation policy for organic investment, mergers and acquisitions, and shareholder returns." From VMware.
Source link
