Silver Lake Sells $44 Million Dell Shares

Multi-Day Selling Campaign Across September

Silver Lake Partners IV executed a series of Dell sales in the days leading up to the major September 11 transaction. On September 9, the firm sold 52,708 shares at an average price of $540.39 each, according to KalkinemMedia. One day earlier, on September 8, Silver Lake sold 54,731 shares at $527.07 per share, showing a gradual price increase across the three-day period.

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Class B-to-C Conversion Strategy Employed

The transactions involved converting Dell Class B shares into Class C shares before selling or distributing them. One filing documented the sale of 729 Class C shares, while another reported a 2,479-share sale from conversions. DefenseWorld noted that Silver Lake held Class B shares convertible into Class C shares on a one-to-one basis, allowing flexibility in the transaction structure.

After the September 11 transactions, Silver Lake retained 42,089,281 Class B shares indirectly held and convertible into Class C shares. The firm also maintained 1,403,750 Class C shares held directly and 376,398 held indirectly, preserving a substantial stake in the company despite the $44.2 million selloff.

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Filings Reveal In-Kind Distributions and Exemptions

Some share transfers were characterized as in-kind distributions rather than standard open-market sales, according to SEC filings reported by KalkinemMedia. These transactions were coded as "other acquisition or disposition," providing a different treatment under securities regulations. The receipt of distributed Class C shares was exempt from reporting under Rule 16a-13 of the Exchange Act.

Director Egon Durban and other Silver Lake-affiliated entities noted in their filings that they may be deemed Dell directors through deputization. The entities disclaimed beneficial ownership of the reported securities except to the extent of their pecuniary interests, limiting their legal liability for the shares involved in these transactions.

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