Dell Shares Hit All-Time High Following VMware Spin Off
It would seem that Dell Technologies’ decision to spin off its stake in VMware was a wise one.
Dell shares hit a record high on Friday, leaping to US$101.42. The previous day Dell had closed at US$98.92, a 6.7 per cent surge.
The Texas-based company acquired EMC Corp, the parent company of VMware, in 2016 for AUD$86.6 billion. Dell stock has risen 35 per cent in 2021 alone, but the decision to spin off its 80.6 per cent majority share has seen stock really accelerate in the past week.
Through the deal, two separate companies will emerge, with Dell receiving a pay out in the vicinity of AUD$12 billion.
The deal is expected to close fourth-quarter 2021.