Dell Technologies announced that the company will spin-off 81% equity ownership of VMware. The terms of the agreement include significant simplification to the corporate ownership structure and an $11.5B to $12.0B special cash dividend recommended by the independent Special Committee and declared by the VMware Board to all VMware stockholders immediately prior to the spin-off and subject to the satisfaction of all closing conditions.
81% equity ownership
The duo has also finalized a commercial agreement that preserves and enhances their strategic partnership. The spin-off will provide VMware increased freedom to execute its strategy, a simplified capital structure and governance model and additional strategic, operational, and financial flexibility. It also includes simplifying capital allocation decisions and eliminating the current dual-class stock structure. Zane Rowe, chief financial officer and interim chief executive officer, VMware, said,
“We will have an enhanced ability to extend our ecosystem across all cloud vendors and on-premises infrastructure vendors and a capital structure that will support growth opportunities. Our strategic partnership with Dell Technologies remains a differentiator for us, and, as we execute on our multi-cloud strategy, we continue to provide customers our solutions and services on any public cloud and any infrastructure.”
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