UNITED STATES (VOP TODAY NEWS) — The American company Dell Technologies, specializing in the production of computer equipment, has returned to the exchange market.
Five years ago, company founder Michael Dell has bought all the shares from the market, making Dell a private company, having the world’s largest privatization deal since the financial crisis in 2008.
At the opening of yesterday’s trading session on the New York Stock Exchange, the shares were trading at Dell $ 46. By the end of the day, they fell to $ 45.43. Thus, the capitalization of Dell amounted to $ 35 billion, according to The Wall Street Journal
Dell made the listing in an unconventional way, without an initial public offering (IPO). Instead, the company bought for $ 24 billion tracking shares of a subsidiary software developer VMware, which were traded under the ticker DVMT.
These shares were issued in 2015 to track VMware performance separately from Dell. After the deal, VMware remained a publicly traded company with control from Dell.
Michael Dell and Silver Lake fund bought out Dell shares in 2013, the amount of the transaction amounted to about $ 25 billion.
The reason for the buyback of shares was the decline in PC sales caused by the transfer of users to mobile devices. Dell intended to transform Dell from a PC maker to a wider company selling, including storage and servers.
The decision to make Dell a non-public company was made by a special board of directors. It was created after Dell asked the board in August 2012 to consider this option.
After a thorough analysis of the proposals of Michael Dell and alternative options, the commission concluded that the purchase of shares by private investors is the most promising option for the company’s further development.
On Monday, December 24, the DVMT rate fell by 22%, which was expected, since the window was closed for shareholders to receive Dell funds in connection with the transfer of these securities to the company.
Dell announced that 91.2% of the outstanding shares of DVMT were purchased using cash, and the rest through shares of Dell Technologies, a publicly traded company.
Michael Dell, who owns 72% of Dell’s common stock, will remain chairman and CEO of the publicly traded company. It is noted that the position has become one of the few things that have not changed when the company moved from private to public status.
Dell Technologies completed the third quarter with a 15% revenue growth (compared to the same period in 2017), which amounted to $ 22.48 billion, due to the fact that companies update their computers running old versions of Windows.
In addition, VMware’s strong financial performance helps.
Over the past 12 months, Dell’s revenue was $ 89.6 billion, and adjusted earnings before tax was $ 10 billion. The company’s main debt is about $ 34 billion.
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