Unisplendour Takes Stake in Western Digital
September 30 2015 - 8:30AM
Dow Jones News
Chinese-based Unisplendour Corporation Limited will buy a 15%
stake in Western Digital Corporation, allowing it to nominate a
director, the companies said Wednesday.
A Unisplendour unit will invest $3.775 billion in Western
Digital, purchasing newly issued stock of the California-based
Western Digital at a price of $92.50 per share—a sharp premium to
the company's closing price of $68.87 on Tuesday.
Shares of Western Digital jumped 9.3% to $75.26 in premarket
trading on Wednesday.
Under the agreement, Unisplendour will be able to nominate one
representative to the Western Digital board of directors. The board
representative right ends if Unisplendour's ownership falls below
10%.
Unisplendour has agreed to a five-year lockup on its shares,
with a limited number of shares becoming available for transfer
each year. The deal is pending regulatory approvals.
Western Digital said the investment will help facilitate growth
as the global data-storage industry changes.
Founded in 1970, Western Digital is a data-storage maker,
including hard disk drives and solid-state drives. It also offers
mobile drives, home video recorders, home-network storage devices
and portable, desktop and personal cloud storage.
Unisplendour makes and sells computer, communication and other
electronic products. The company was founded in 1999 and is based
in Beijing.
Write to Ezequiel Minaya at ezequiel.minaya@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
September 30, 2015 08:15 ET (12:15 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
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