MacMusic  |  PcMusic  |  440 Software  |  440 Forums  |  440TV  |  Zicos

Dell Announces Long-Awaited Spinoff of VMware

jeudi 15 avril 2021, 18:06 , par Slashdot
Dell has announced the long-expected spinoff of VMware, the computing virtualization company it has majority-owned since it bought then-owner EMC Corp. in 2016. From a report: The computing giant said it will spin off its 81% equity ownership in VMware, creating two standalone companies when the move is completed in the fourth quarter of this year. That timing depends on conditions such as a favorable Internal Revenue Service opinion that the transaction qualifies for tax-free status for Dell shareholders. The idea is to simplify the companies' capital structures, since arguably investors have valued both companies' stocks lower than they might have because of the uncertainties related to the complex capital structures. Dell's shares rose about 9% in after-hours trading, while VMware's shares rose about 1.6% in late trading. Under the spinoff, which Dell had signaled last year, VMware will distribute a cash dividend of about $11.5 billion to $12 billion to shareholders, which of course include publicly held Dell itself. Chairman and Chief Executive Michael Dell, along with financial partner Silver Lake Partners, own 60% of Dell shares. Dell will get $9.3 billion to $9.7 billion of that dividend, which the company said will help it get more investment-grade ratings and enable it to pay down debt it has gradually been reducing since buying EMC.

Read more of this story at Slashdot.

Voir aussi

News copyright owned by their original publishers | Copyright © 2004 - 2021 Zicos / 440Network
Date Actuelle
mer. 22 sept. - 20:22 CEST