Dell spins off VMware stake

Stefan Mileschin · 16th April 2021, 10:14

Debt reduction plan

Dell has said it will spin off its 81 percent stake in cloud computing software maker VMware, in a move that will help the PC maker reduce its debt.

VMware will distribute a special cash dividend of between $11.5 billion and $12 billion to all its shareholders, including Dell, which will receive between $9.3 billion and $9.7 billion, in the transaction that is expected to be tax-free.

The spinoff, first proposed in a filing last July, will help Dell lower its long-term debt of $41.62 billion, much of which was taken on during its 2016 acquisition of data management firm EMC.

Dell hopes doing so will help it achieve an investment-grade rating and simplify its capital structure.

VMware is currently Dell's best-performing unit and has benefited from companies looking to cut costs and move to the cloud, a shift that the COVID-19 pandemic has accelerated.Shares of Dell jumped more than 8.4 percent in extended trading, while VMWare stock rose 1.5 percent.
https://fudzilla.com/news/52697-dell...f-vmware-stake

16th April 2021, 10:14	#1
Stefan Mileschin [M] Reviewer Join Date: May 2010 Location: Romania Posts: 148,964	Dell spins off VMware stake Debt reduction plan Dell has said it will spin off its 81 percent stake in cloud computing software maker VMware, in a move that will help the PC maker reduce its debt. VMware will distribute a special cash dividend of between $11.5 billion and $12 billion to all its shareholders, including Dell, which will receive between $9.3 billion and $9.7 billion, in the transaction that is expected to be tax-free. The spinoff, first proposed in a filing last July, will help Dell lower its long-term debt of $41.62 billion, much of which was taken on during its 2016 acquisition of data management firm EMC. Dell hopes doing so will help it achieve an investment-grade rating and simplify its capital structure. VMware is currently Dell's best-performing unit and has benefited from companies looking to cut costs and move to the cloud, a shift that the COVID-19 pandemic has accelerated.Shares of Dell jumped more than 8.4 percent in extended trading, while VMWare stock rose 1.5 percent. https://fudzilla.com/news/52697-dell...f-vmware-stake

Similar Threads
Thread	Thread Starter	Forum	Replies	Last Post
Dynatron A38 CPU cooler fan spins at up to 11,000 RPM	Stefan Mileschin	WebNews	0	25th March 2021 16:45
ARM spins off IoT arm	Stefan Mileschin	WebNews	0	23rd November 2020 07:20
Dell may sell itself to VMware, a company it already owns	Stefan Mileschin	WebNews	0	4th February 2018 06:19
Intel spins off McAfee	Stefan Mileschin	WebNews	0	9th September 2016 09:47
Dell can buy back VMWare shares	Stefan Mileschin	WebNews	0	17th December 2015 07:14
Sony spins off chips	Stefan Mileschin	WebNews	0	7th October 2015 10:20
AMD spins off Radeon graphics into new division	Stefan Mileschin	WebNews	0	11th September 2015 08:44
Osram spins off its LED business	Stefan Mileschin	WebNews	0	23rd April 2015 13:14
Leadtek Announces VMware Certification of PC-over-IP® Zero Client for VMware View 4	jmke	WebNews	0	23rd December 2009 08:04