Friday, 26 January, 2024

Dell spins off 81% VMware stake to generate $9.7 bn to cut debt

<p>Dell would spin off its 81% stake in VMware to lower its long-term debt of $41.62 bn, mostly taken during its 2016 acquisition of EMC. The cloud computing firm will disburse a special cash dividend of around $12 bn to all its stakeholders, including Dell, which will receive around $9.7 bn, in a likely tax-free transaction. Dell, with the spinoff, will also get an investment-grade rating and simplify the capital structure. VMware, at present, is Dell&#39;s best-performing unit.</p> <p>&nbsp;</p>