logo-loader
Western Digital

Western Digital to sell 15% stake to China’s Unisplendour for $3.78bn

data_center350_560bd90909f49.jpg
Many Western companies are looking for local partners in China or seeking to sell off some assets to Chinese buyers.

Western Digital (NASDAQ:WDC) surged in early trading after the U.S. data storage company said Chinese state-backed Unisplendour Corp Ltd would invest $3.78bn in the company for a 15% stake.

The Irvine, California-based company will issue new shares to Unisplendour at $92.50 each, a 33.3% premium to Western Digital's Tuesday close.

The shares soared as much as 13% as of 8:20 a.m. in New York. The stock had closed up 1.6% at $69.37 on Tuesday, paring this year’s retreat to 37%.

Under the agreement, Unisplendour will have the right to nominate one representative to Western Digital's board, the companies said in a statement on Wednesday. 

Western Digital said the investment will help improve growth as the global data-storage industry changes.

U.S. and European technology companies have grappled to get customers in China after former U.S. National Security Agency contractor Edward Snowden's revelations of cyberspying program involving U.S. firms.

Many companies are looking for local partners in China or seeking to sell off some assets to Chinese buyers. 

 

Quick facts: Western Digital

Price: $55.19

Market: NYSE
Market Cap: $16.17 billion
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Full interview: Arcadia Biosciences makes major progress on its hemp venture...

Arcadia Biosciences Inc (NASDAQ:RKDA) CEO Raj Ketkar tells Proactive the California-based company expects to “significantly scale revenues in 2020” as it reported financial and business results for the second quarter and first half of 2019. Ketkar says the agricultural innovation company made...

1 day, 9 hours ago

2 min read