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Here's what's happening to VMware and Dell Today – The Motley Fool

What happened

Dell Technologies It ended last weekend because of the wonderful travels of all the public markets Dell Technologies Class V (NYSE: DVMT) stock. Transaction is also involved VMware (NYSE: VMW)Dell controls 80% stake. VMware paid a shareholder of $ 11 million worth of paydaydays on Friday, as part of the deal.

Dell's stake was approximately 3.4% at 1:30 p.m. EST, while Class V shares are traded. VMware shares fell by 14.3% on Friday and paid a special dividend. Today is the date of dividend. Adapted for special dives, VMware invented about 3%.

Dell jobs.

Image source: Dell.

So what

The Dell Class V stock was a monitoring inventory designed to continue the performance of Dell's VMware. Stock Dell's agreement was originally granted to acquire EMC, closed in 2016. EMC had 81% of VMware before it was purchased by Dell.

Delle successfully exchanged cash and exchange of new Class C shares on Friday, including all shares in Class V shares. The company paid $ 14 million and tracked almost 150 million shares of C shares. The movement simplifies the corporate structure of Dell and Dell returns to public markets without having to make a public offering.

Class V shareholders had the option of $ 120 in cash or 1.8066 Class V shares per share in V, $ 14 million in aggregate cash cash. More than 90% of shareholders chose cash, choosing the shared option from the rest. Once the cash limit has been exceeded, the shareholder shareholder will receive part of the payment in Class C stock. The cash option was the movement, now, of Class C shares, about $ 47 per share.

As part of the transaction, VMware paid a one-time special dividend of $ 11 million. The dividend is the shareholder register, with the closing date of the business of December 27, with a date of payment of December 28, December 31, the date of the dividend. $ 11 million of payment works at $ 26.81 per share.

"Dell Technology was created to be a key infrastructure of this digital age and, with today's announcement, we align the interests of our interests in favor of creating and innovating our business worldwide," said Dell CEO Michael Dell, a press release announcing the end of the transaction.

Now what

With the monitoring stock and Dell's back in public markets, investors can participate in the company's commitment, not just VMware. Dellen's revenue is accelerating, with an inter-annual increase of 15% in the third quarter. But the company still has a large amount of debt. From next November 29, Delle had $ 48.7 million and $ 17.5 million. However, the received dividend from VMware will pay off part of the purchase part of the monitoring stock.

VMware now has less money after paying a dividend. The total amount of $ 29 million was $ 13.5 million, $ 4 billion. This agreement will make the VMware balance weaker.

After a few years of going private and creating a complex structure of its complexity in 2013, Delle has been dismantled and funded by EMC and is a public company again. Everyone who works all the time can see traces.

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