Western Digital Corporation and Unisplendour Corporation Limited (Unis) today jointly announced that they have entered into an agreement under which a subsidiary of Unis will make a USD $3.775 billion equity investment in Western Digital. Under the terms of the investment, Unis has agreed to purchase newly issued Western Digital common stock at a price of $92.50 per share.
Immediately following the closing of the investment, Unis will hold approximately 15% of Western Digital's issued and outstanding shares of common stock based on the number of issued and outstanding shares as of Sept. 25, 2015. Unis will have the right to nominate one representative to the Western Digital board of directors and will be subject to a five-year position standstill and voting restrictions. The board representative right terminates if Unis' ownership falls below 10%. In addition, Unis has agreed to a five-year lock-up on its shares, with a limited number of shares becoming available for transfer each year.
Proceeds from the investment will go toward strengthening Western Digital's balance sheet, providing financial flexibility and pursuing long-term strategic growth initiatives.
"The equity investment by Unis will help facilitate our growth as we look to capitalize on the many opportunities and changes within the global storage industry," said Steve Milligan, president and chief executive officer, Western Digital. "This investment reflects Unis' strong support for Western Digital's value-creation efforts."
"We are excited to establish a relationship with Western Digital, a leading company in the storage industry with a capable and talented management team and workforce. We believe this long-term investment will serve as a constructive collaboration model for Chinese and U.S. companies to work together for success," said Weiguo Zhao, chairman of Tsinghua Unigroup and Unisplendour Corporation.
The closing of this investment transaction is subject to certain regulatory approvals and other customary closing conditions.
Wells Fargo Securities, LLC has acted as the financial advisor to Western Digital.
Latest News Posts
- Nintendo Switch may come to $37 billion Chinese market
- Obsidian's Alien RPG would've been a macabre Mass Effect
- Konami's new Castlevania collection has lots of variety
- Ex Nintendo CEO Reggie Fils-Aime blessed with retiring gifts
- Mortal Kombat 11 Switch gameplay trailer shows story mode
- Scythe Kaze Flex 120 RGB Fan Review
- Synology DS1019 NAS Review
- BIOS settings CPU Fatal1ty X470 Gaming K4, x470
- Cougar Vortex RGB HPB 120 PWM HDB Cooling Kit Review
- Reolink RLC-422 PoE Dome Camera Review
- Freeze Your Opponents On The Hardwood
- You Have Been Summoned to the Summoners War: Tour of Americas
- Egg-splosive Fun Cracks Open In Entropia Universe's Easter Mayhem 2019
- All content of Fishing Planet in a Premium Edition for consoles!
- Voiceover Legends And Console-Inspired Graphics Meet For Epic Battle In Overhit