Michael Dell, chairman and CEO of Dell Technologies (NYSE: DELL), and private equity partner Silver Lake Partners will own approximately 52 percent of the shares in VMware after the VMware (NYSE: VMW) spin-off, CRN reported on Monday .
In mid-April, Dell Technologies announced plans to outsource its 81 percent stake in VMware to expand into hybrid cloud, 5G, edge and other growth areas and simplify capital structures. The spin-off is expected to be completed in the fourth quarter of 2021 through a tax-free transaction.
CRN cited sources that Michael Dell will own a 41 percent stake in VMware and Silver Lake will own approximately 11 percent of VMware upon completion of the transaction.
Michael Dell and Silver Lake own 52 percent and 14 percent, respectively, of Dell Technologies with a market capitalization of approximately $ 75 billion.