(Reuters) -Dell Technologies Inc said on Wednesday it would spin off its 81% stake in cloud computing software maker VMware, creating two standalone public companies.
VMware will distribute a special cash dividend of between $11.5 billion and $12 billion to all VMware shareholders, including Dell. The PC maker is estimated to receive between $9.3 billion to $9.7 billion.
Dell shares were up nearly 7% in extended trading.
It had disclosed the spinoff plans in July last year. The deal is expected to close in the fourth quarter.
(Reporting by Munsif Vengattil in Bengaluru; Editing by Anil D’Silva)
