Dell Technologies offers an offer to track inventory

Dell Technologies Inc.

DVMT, + 4.06%

said Thursday it's sweetening its proposed offer to buy an affiliate and return to public markets after having had strong backlash from the shareholders. The company said shareholders in DVMT, which are supposed to track Dell's stake in the fast-growing VMware Inc.

VMW, + 1.19%

software device will now be offered $ 1[ads1]20 in cash, subject to a cash capital of $ 14 billion or 1.5043 to 1.8130 class C shares for each share owned . The move increases the total underwritten value of V-shareholders by around $ 2.2 billion, the company said in a statement confirming a previous report in the Wall Street Journal. The company has binding agreements to vote for the sweet deal from Dodge & Cox, Elliott Management, Canyon Partners and Mason Capital Management, which owns around 17% of the Class V shares. "Given there will be no public market for Dell Technologies Class C shares before the closure, variable exchange conditions are specifically designed to provide protection to Class V shareholders on the value of the Class C share price," said the statement. $ 120 implied value per share implies a market value of $ 23.9 billion for the tracking price. Class V shares will end up owning around 17% to 33% of Dell Technologies, depending on cash and stock options and final exchange conditions. The company will finance the sweet offer of debt financing. It will further strengthen the governance rights of the A shareholders by allowing them to elect a board member starting at the company's 2020 Annual Meeting. The vote on the agreement is still scheduled for December 11 and is expected to be at the turn of the year. Shares rose 1.1% premarket and have increased 30% in 2018, while S & P 500

SPX, -0.76%

has achieved 1.1%.

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