Dell Technologies Reports Completion of VMware Spin-off
Nov 2, 2021 By MarketDepth
Dell Technologies (NYSE: DELL) completed the spin-off of the 81% equity ownership of VMware Inc. This was completed through a special dividend of 30,678,605 shares of VMware Class A Common Stock and 307,221,836 shares of VMware Class B Common Stock distributed to Dell stockholders of record as of days close on October 29th, 2021. Shares of VMware Class B Common Stock was converted into one share of VMware Class A Common Stock in completion with the distribution and previous receipt by Dell’s stockholders of such shares. Shareholders of Dell will receive cash in lieu of any fractional shares of VMware Class A Common Stock as this spin-off creates two standalone companies that are positioned for growth in the data era.
“Today marks an important milestone for both Dell and VMware. We are unlocking significant value for stakeholders, while maintaining our close partnership in sales, support and innovation for our customers. We are full speed ahead, solving customer problems, driving progress and capturing opportunities in areas like multi-cloud, edge and telecom.”Michael Dell, chairman and chief executive officer, Dell Technologies
VMware has distributed a cash dividend of USD 11.5 Billion to all VMware shareholders which include Dell Technologies, which has received USD 9.3 Billion and will utilize the funds to pay down debt.