Dell is planning to expand its base of operations in Singapore by transferrring $12 billion in stock to its current Singapore subsidiary.
The company released a classic piece of legal and accounting gobbledygook as part of a filing with the SEC Wednesday after the close of the stock market. A Dell representative deciphered the release, explaining that Dell issued around 475 million shares of its stock--worth about $12 billion--to a wholly-owned subsidiary in Singapore that serves as a base of operations for manufacturing, support and design. That subsidiary plans to use the money to beef up its operation by taking a controlling interest in another one of Dell's wholly-owned subsidiaries in the region.
Since the shares are not leaving Dell's coffers, it's not as if the company dumped 475 million shares on the open market, and they can't be resold without submitting additional forms to the SEC. It's all part of Dell's plan to serve a growing customer base outside the U.S, the representative said. The company doesn't plan to cut jobs in the U.S. as part of the expansion, but it will hire people locally to fill out the new spots.