Dell to spin off VMware stake in deal worth up to $9.7 billion



© Reuters. The logo for Dell Technologies Inc. is displayed on a screen on the floor of the New York Stock Exchange in New York

(Reuters) – Dell Technologies Inc said on Wednesday it would spin off its 81% stake in cloud computing software maker VMware, creating two standalone public companies.

VMware will distribute a special cash dividend of between $11.5 billion and $12 billion to all of its shareholders, including Dell. The PC maker is estimated to receive between $9.3 billion to $9.7 billion from the spinoff.

Dell stockholders would receive about 0.44 shares of VMware for each of their shares.

The companies said the deal will simplify their capital structures. Both firms will enter into a commercial arrangement to continue to align sales activities and for co-development of solutions.

Dell shares were up nearly 7% in extended trading.

The spinoff plans were originally announced by Dell in July last year. The deal is expected to close in the fourth quarter.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

READ  Why I’d follow Warren Buffett’s advice on how to beat a market crash





READ SOURCE

LEAVE A REPLY

Please enter your comment!
Please enter your name here