Payment of the Special Dividend remains subject to . Michael Dell said during a news conference at Dell Technologies World 2020 that no VMware spinoff of shares would involve selling it to a third party. paid by VMware in connection with the spin-off of VMware by Dell Technologies Inc. ("Dell"). The move to create two standalone companies will preserve the close partnership between . Despite the positive consequences, the spin-off is unlikely before next year as Dell cannot effect a tax-free spin of its VMware stake until September 2021, due to a rule requiring both companies . No vote or action is required by Dell shareholders to receive the special stock dividend of shares of VMware common stock. Dell, which owns 81 per cent of the data centre software company, said VMware would pay out $11.5bn-$12bn in total as a special dividend to all of its shareholders. The final distribution ratio will be. Dell Technologies Announces Distribution Ratio for VMware Spin-Off Special Dividend ROUND ROCK, Texas - October 29, 2021 Dell Technologies (NYSE: DELL) announces the final distribution ratio for the special dividend of its shares of VMware, Inc. Class A common stock and Class B common stock to Dell Technologies stockholders is 0.440626. The spin-off includes an $11.5 billion . Potential deal could unlock value for shareholders The stock transactions and shareholder payouts portion of the deal are set to be . . Dell's long-pending spinoff of a controlling stake in VMware is set for Nov. 1. . Standalone, Dell looks like a cheap and . Currently, Dell has a market cap of $46BN and its VMW stake is worth $47.6BN. In 2016, Dell acquired EMC and sought to integrate EMC and VMware technologies into its offerings to basically become a one-stop shop for digital infrastructure and all things needed to drive digital transformation. VMware will continue to use Dell Financial Services. The terms of the spin-off included an $11.5 billion special cash dividend (the "Special Dividend") that resulted in a $27.40 per share dividend payment on November 1, 2021 (the "Payment Date") to all VMware stockholders as of close of business on October 29, 2021 (the "Record Date"). The spin-off 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's stockholders of record as of 5:00 p.m. In October, Dell said his company intended to keep control of VMware even if it spun off some of its stock, and added that selling shares would not affect products or technologies. 8. Recommended For You Comments ( 47 ) Dell Technologies (NYSE: DELL) has completed the spin-off of its 81% equity ownership of VMware Inc. In the event of a spin-off, Dell Technologies intends to negotiate terms consistent with an investment grade rating for both companies ROUND ROCK, TEXAS - July 15, 2020 Dell Technologies (NYSE:DELL) is exploring a potential spin-off of its 81% equity ownership interest in VMware (NYSE:VMW). Here is the information you need to complete the spinoff. Dell Technologies' spin-off of VMware is expected to be completed on Nov.1 and shareholders would receive ~0.44 shares of VMware for each share of Dell. Dell plans to spin off its 80.6% stake in VMware in November. The spinoff . Dell has been weighed down by debt, after borrowing about $70bn to finance its dealmaking. As anticipated, no-moat Dell Technologies ( DELL) announced it will spin off its 81% equity ownership of narrow-moat VMware ( VMW) in the last quarter of calendar 2021. The deal is expected to close this year. Dell last month announced October 29th as the date of the separation. Dell Technologies to spin-off its 81% equity ownership of VMware, forming two standalone public companies Under terms of the planned spin-off, VMware will distribute a special cash dividend of $11.5 - $12 billion to all VMware shareholders, including Dell Technologies This month, Dell Technologies officially confirmed it will spin-off its 81-percent stake in VMware to current Dell Technologies shareholders in the fourth quarter of 2021. These forward -looking . On November 1, 2021, at 5:01 p.m. EDT (the "Distribution Date"), pursuant to the terms and conditions of the Separation and Distribution Agreement dated April 14, 2021, between Dell Technologies Inc. ("Dell Technologies") and VMware, Inc. ("VMware"), Dell Technologies distributed its entire interest in VMware (the "Distribution"), consisting of . The final distribution ratio will be determined and announced on the record date. Its shares jumped on the announcement. Dell Technologies spun off VMware effective November 1, 2021 in a transaction meant to be tax-free to DELL shareholders. Dell Technologies Inc (DELL.N) said on Wednesday it would spin off its 81% stake in cloud computing software maker VMware (VMW.N), in a move that will help the PC maker reduce its debt. New York CNN Business . Investors have long yearned for a spinoff of VMware, which would likely unlock a lot of value. After months-long negotiations, Dell Technologies announced Wednesday it plans to spin off its 81% ownership stake in VMWare. The terms of the spin-off included an $11.5 billion special cash dividend (the "Special Dividend") that resulted in a $27.40 per share dividend payment on November 1, 2021 (the "Payment Date") to all VMware stockholders as of close of business on October 29, 2021 (the "Record Date"). Dell Technologies' spin-off of its 81-percent stake in VMware will "likely" close in October after the passing of the five-year anniversary of Dell's blockbuster acquisition of EMC and. Dell, buoyed by the work-from-home boom in PC sales, is now pinning its hopes on the new market for "edge computing," as some of the computing power in centralized cloud data centers moves to smaller, local facilities closer to users. By. Dell will shed its 81% stake in VMware, creating an independent software company with a stock market value of $64 billion, Financial Times . Dell's potential spinoff of VMware will benefit both parties: Analyst. The long-planned, on-again, off-again Dell Technologies-VMware spinoff is on schedule to happen by the end of November. Date: 11/1/2021; Select Parent Security (or Parent Company) : Dell Technologies(DELL) The distribution will likely complete on November 1. Dell stockholders will receive .440626 of a share of VMware common stock, Class A for each share of Dell . These FAQs speak as of the date set forth above. Why it matters: His remarks come six months after Austin-based Dell announced that it's spinning off its ownership stake in VMware, meaning the company will offer VMware shareholders a special cash dividend between $11.5 and $12 billion. For the first time, Dell provided an expected spin-off completion date of . October 1, 2020 - Notes. VIDEO 03:07. Michael Dell. A regulatory filing stated "this process is currently only at an exploratory stage" and is being contemplated because it could "benefit both Dell Technologies' and VMware's stockholders by simplifying . 01:19. Dell recently held an analyst day, outlining its outlook for the core business without VMware. The companies will enter into a commercial agreement to co-develop critical solutions and align sales and marketing activities. The move will create two standalone public companies, with Michael Dell . Dell Technologies Inc <DELL.N> is considering spinning off its 81% stake in cloud computing software maker VMware <VMW.N>, the PC maker said on Wednesday, adding that such a move would not occur . even after the spin-off is official. Dell Technologiesto spin-off its 81% equity ownership of VMware, forming two standalone public companies Under terms of the planned spin-off, VMwarewill distribute a special cash dividend of $11.5- $12 billionto all VMwareshareholders, including Dell Technologies Dell, which owns 80.6%. Dell Technologies Inc. said it will spin off its stake in VMware Inc., creating two publicly traded companies and raising cash to pay down debt. The terms of the spin-off included an $11.5 billion special cash dividend (the "Special Dividend") that resulted in a $27.40 per share dividend payment on November 1, 2021 (the "Payment. Dell Technologies is exploring a potential spin-off of its 81% ownership of VMware. VMware CEO Pat Gelsinger and other Dell executives said the two companies' development efforts remain inextricably linked. April 14, 2021 Dell Technologies to Spin-off 81% Equity Ownership of VMware, Positioning VMware for Further Growth Provides VMware with Strategic and Operational Flexibility while Preserving Dell Technologies Strategic Partnership VMware to Pay $11.5B-$12.0B Special Cash Dividend to All Stockholders; Committed to Investment Grade Rating Dell Technologies Explores VMware Spin-Off. The spinoff will provide Dell cash to reduce its debt load, which was $48.5 billion at the end of fourth-quarter 2020. VMware began normal trading on November 2, 2021. . Shares of Dell Technologies ( DELL -0.24%) and VMWare ( VMW -0.42%) rocketed higher last week, after Dell management confirmed it would in fact be spinning off its 80.6% stake in VMWare later this . We believe this spinoff is . Dell then returned to the public market in 2018 through a complicated reverse merger with a now defunct . VMware confirmed today that the per share dividend amount for VMware's US$11.5 billion conditional special cash dividend payable pro-rata to all VMware stockholders will be US$27.40 per share . Eric J. Savitz. Dell Technologies will spin off its 81% majority stake in virtualization giant VMware, the company announced Wednesday. This transaction has long been rumored and makes a lot of sense. With an estimated " 75% of enterprise data to be processed outside of a traditional data centers by 2025 ," Dell very much wants to be the engine for this acceleration of . Dell initially gained ownership of VMware through its acquisition of EMC in 2015. Dell Technologies Announces Completion of VMware Spin-off November 1, 2021 at 4:15 PM EDT ROUND ROCK, Texas, Nov. 1, 2021 /PRNewswire/ -- Dell Technologies (NYSE: DELL) has completed the spin-off of its 81% equity ownership of VMware Inc. +Analysis Dell this week announced it is exploring a sale of the 81 per cent chunk of VMware it owns that is not publicly traded. News of VMware spinoff plans first came to light in July 2020. the spin-off and changes in VMware's and Dell Technologies' commercial relationships and go-to-market . PALO ALTO, Calif.-- ( BUSINESS WIRE )--The VMware (NYSE: VMW) Special Committee of independent directors and Dell Technologies have agreed to terms in which VMware will be spun-off from Dell . The move will turn both into . The company's core debt stood at $29.2 billion. Dell Technologies ( DELL) said Wednesday it will spin off its 81% stake in VMware ( VMW) in a deal that will create two standalone companies and result in a special . The Special Dividend is payable in connection with the closing of the transactions contemplated by that Separation and Distribution Agreement, both originally announced on April 14, 2021, pursuant to which VMware will be spun-off (the "Spin-off") from Dell Technologies Inc. ("Dell"). Dell Technologies' spin-off of VMware is expected to be completed on November 1, 2021 (the "distribution date"), subject to certain conditions. On July 15, 2020, Dell Technologies (DELL), announced that it is exploring spinning off its 80.1% stake in VMWare (VMW). Dell will remain as chairman of both companies. Dell is spinning VMware out of its IT empire in a deal worth up to $9.7 billion. PALO ALTO, Calif., November 01, 2021--VMware (NYSE: VMW) and Dell Technologies today announced the completion of the spin-off of VMware from Dell Technologies. Dell Technologies' spin-off of VMware is expected to be completed on November 1, 2021 (the "distribution date"), subject to certain conditions. Shares of the Round Rock, Tex.-based Dell closed 3.2% lower at $54.61 Tuesday. . Dell is spinning off its sizable stake in VMware, the cloud computing software maker. The terms of the spin-off included an $11.5 billion special cash dividend (the "Special Dividend") that resulted in a $27.40 per share dividend payment on November 1, 2021 (the "Payment Date") to all VMware stockholders as of close of business on October 29, 2021 (the "Record Date"). Dell Sets Date for Distribution of VMware Stake to Holders. As part of the spin-off, VMware is paying a special dividend to shareholders of about $12bn, helping Dell . PR Newswire. With Dell and VMware shares both falling 7% on the Gelsinger departure, the urgency just increased. Fast forward to 2021, and each company has seen momentous . First unveiled to the world in July 2020, Dell's spin-off of VMware is set to be completed next week on Nov. 1. Dell shareholders will receive approximately 0.44 shares of VMware for each share of Dell that they hold, based on shares outstanding Tuesday. ET on October 29, 2021. Dell Technologies has filed statements to the Securities and Exchange Commission that said it is looking to spin off some . (23) the number of VMware shares outstanding as of the dividend record date and (24) the risks discussed in the "Risk Factors" sections of the ompany's periodic and current reports filed with the SE. The terms of the spin-off included an $11.5 billion [CD1] special cash dividend (the "Special Dividend") that resulted in a $27.40 per share dividend payment on November 1, 2021 (the "Payment Date . The distribution will take place in the form of a pro rata common stock dividend to each Dell Technologies shareholder as of the record date. As part of the spin-off, VMware will pay a one-time special dividend of $11.5-12.0 billion, of which $9.3-9.7 billion will go to Dell given Dell's 80.6% ownership stake. For additional information regarding this special dividend and the related separation of VMware from Dell pursuant to Dell's distribution of its shares of VMware to Dell stockholders (the "Spin . Dell Technologies owns roughly 81% of VMware, a California-based cloud computing and virtualization software . Dell Technologies' spin-off of VMware is expected to be completed on November 1, 2021 (the "distribution date"), subject to certain conditions. Dell Tech will spin-off its 81% equity ownership of VMware, forming two standalone public companies; VMware will distribute a special cash dividend of $11.5 - $12B to all VMware shareholders . Free Reports from TheStreet. The move will create two separate . After all, Dell founder and Chief Executive Officer Michael Dell is the chairman of VMware's board. Dell's Spin-Off of VMware Will Give Customers Greater Flexibility. The ex-dividend date will be November 2, 2021 . And to hear executives from both companies describe the deal, it's. The spin-off from Dell Technologies . VMware, which is based in Palo Alto, Calif., closed up 7.9% to $134.87. VMware will have $4. Updated Oct. 19, 2021 10:27 am . ET on October 29, 2021. Dell acquired VMware as part of the massive $58 billion EMC acquisition (announced as $67 billion) in 2015. . The idea would be to spin off Dell's 81% stake, worth about $47 billion at VMware's stock price today, to VMware shareholders, establishing a clearer market value for both Dell and VMware . The date is now officially set for November 1 for Dell Technologies to complete its spin-off of VMware following a five-year deep partnership between the infrastructure giant and virtualization . The spin-off of its VMware stake to Dell Technologies shareholders will not occur before September 2021, Dell confirmed, as the company seeks to get the deal to qualify as tax-free for. ROUND ROCK, Texas, July 15, 2020 /PRNewswire/ --. Dell Technologies' spin-off of VMware is expected to be completed on November 1, 2021 (the "distribution date"), subject to certain conditions. Dell Technologies has announced the planned spin-off of its 81% equity ownership in VMware. Dell shareholders will . Dell Technologies does not undertake to update any forward-looking statement after the date as of . Dell first announced in mid-April that it would spin off its 81% majority stake in virtualization giant VMware. The final distribution ratio will be determined and announced on the record date. Data center News Dell's VMware Spin-off: 5 Big Things To Know Kyle Alspach April 14, 2021, 07:09 PM EDT. Accordingly, Dell Technologies stockholders will receive .440626 of a share of VMware Class A common stock for each share of Dell Technologies common stock held as of 5:00 p.m. Dell Technologies, in 4Q 2021 with VMware, would be expected to have ~2.0x Net Debt / Adjusted EBITDA with non-DFS related debt of $33.4 billion and $10.3 billion of DFS debt. The terms of the spin-off included an $11.5 billion special cash dividend (the "Special Dividend") that resulted in a $27.40 per share dividend payment on November 1, 2021 (the "Payment Date . Long pending divestmen t VMware and Dell Technologies Reach Agreement Regarding Spin-Off Date : April 14, 2021 Dell Technologies to Spin-off 81% Equity Ownership of VMware, Positioning VMware for Further Growth Provides VMware with Strategic and Operational Flexibility while Preserving Dell Technologies Strategic Partnership The post-spin-off story has Dell investing big in edge computing. ROUND ROCK, Texas, July 15, 2020 . Dell, which acquired its 80% stake in VMware through the 2016 acquisition of data storage maker EMC, said in July that it was exploring a VMware spinoff to Dell shareholders, in part to enhance . No vote or action is required by Dell shareholders to receive the special stock dividend of shares of VMware common stock.