Dell is going public again after a five-year stint as a privately held company.
The PC company is offering to exchange tracking stock for a new type of common shares, in a $21.7 billion deal announced Monday.
As part of a $21.7 billion agreement announced Monday, the PC and data storage company is offering to exchange tracking stock for a new class of common shares.
Class V stockholders may take $109 in cash for each share they hold, or 1.3665 shares of Class C common stock — which will list on the New York Stock Exchange.
Michael Dell, the company’s founder and majority shareholder who owns 72 percent its common shares will remain as chairman and CEO, and investment firm Silver Lake — which took the company private in 2013 — will retain its minority stake.
The Special Committee of Dell Independent Directors recommended the dell following an “extensive independent review,” but it still requires stockholder approval by holders of the Class V shares.
“Over the last five months, with the assistance of our independent financial and legal advisors, we have conducted a thorough evaluation of a number of alternatives to maximize stockholder value,” the committee said.
“I am proud to lead this great company into its next chapter as we continue to evolve and grow to the benefit of our customers, partners, investors and team members,” Michael Dell said of the deal.
“Unprecedented data growth is fueling the digital era of IT, and we are uniquely positioned with our portfolio of technologies and services to enable the digital, IT, security and workforce transformations of our customers.”
Updated at 4:56 PT: Adds quotes from committee and Michael Dell.