Suspends existing DHI Group repurchase program; enters into agreement to sell to VMware$500 million of VMware Class A common stock
ROUND ROCK, Texas--(BUSINESS WIRE)--Dec. 15, 2016-- Dell Technologies Inc. (NYSE: DVMT) announced its board of directors has approved a new stock repurchase program under which the company is authorized to repurchase up to $500 million of shares of the company’s Class V common stock over a period of six months, using assets of the company’s Class V Group.
At the same time, the Dell Technologies board of directors approved the suspension of the previously reported DHI Group repurchase program, under which the company was authorized to repurchase up to $1 billion of shares of the company’s Class V common stock over a period of two years, using assets of the company’s DHI Group. Before its suspension, the company had repurchased approximately $324 million of Class V common stock under the DHI Group program.
Dell Technologies also announced that it has entered into a stock purchase agreement under which VMware, Inc. (NYSE: VMW) will purchase for cash $500 million of VMware Class A common stock from a wholly-owned subsidiary of Dell Technologies. Dell Technologies intends to apply the proceeds from the sale to the new Class V Group repurchase program.
These transactions are intended to reduce the outstanding shares of the Class V common stock, lower expenditures for VMware’s Class A common stock repurchase program and provide Dell Technologies with balance sheet efficiencies. Additional details regarding these transactions will be provided in Dell Technologies’ current report on Form 8-K to be filed by the company with the U.S. Securities and Exchange Commission.
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Source: Dell Technologies
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