It’s the dawn of a new day at Dell Technologies. The infrastructure giant is set to become a public company on 28 December, 2018, after more than 61 percent of shareholders approved the company’s bid to become public through a VMware stock swap.
"With this vote, we are simplifying Dell Technologies' capital structure and aligning the interests of our investors," said Michael Dell, chairman and CEO of Dell Technologies, in a statement on Tuesday.
"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. We've created Dell Technologies to be our customers' most trusted partner in their digital transformation."
Dell expects its Class C shares to begin trading on the New York Stock Exchange on 28 December. After months of discussions and negotiations with investors, Dell Technologies received the stockholder approval it needed to become public on Tuesday during a special meeting at its Texas-based headquarters.
Dell Technologies Class C shares will trade on the New York Stock Exchange as DELL. The company was listed on the New York Stock Exchange with the tracker DELL from 1988 to 2013, at which time Michael Dell and private equity firm Silver Lake Partners bought Dell back from public shareholders for US$24 billion.
Holders of more than 61 percent of Dell Technologies' Class V common stock, excluding affiliates of Dell Technologies like Michael Dell and Silver Lake, voted in favour of the transaction. Votes in favour of the transaction constitute more than 89 percent of the Class V shares voted by unaffiliated Class V common stockholders who cast a ballot.
"We believe that Dell Technologies is best positioned to succeed in today's data-driven economy thanks to the unique collection of businesses that Michael and his team have assembled and look forward to remaining long-term investors in the company," said Egon Durban, managing partner and director of Silver Lake, in a statement.
"It is exciting to be able to now share the value creation across all of the businesses and assets of Dell Technologies with public investors, and we look forward to them joining us on this journey."
After weeks of negotiations and a heated battle between Dell Technologies and activist investor Carl Icahn, among others, shareholders approved a deal to exchange each share of DVMT VMware tracking stock for Class C common stock, or US$120 per share.
Dell initially proposed exchanging shares of the tracking stock for significantly fewer Class C shares, or US$109 per share. The proposal drew the ire of Icahn and other investors who argued Dell had severely undervalued the transaction and should pony up for shareholders. Icahn, who owns about 9.3 percent of DVMT shares, kicked off a short-lived proxy battle with Dell when he sued Dell in October. Icahn withdrew the suit in November, calling it "unwinnable" after Dell sweetened the stock swap deal.
The closing of the deal is expected to occur on 28 December and is subject to satisfaction of closing conditions.