Unisplendour To Buy $3.775 Bln Of Newly Issued Western Digital Stock

(RTTNews) - Western Digital Corp. (WDC) and Unisplendour Corporation Limited announced that they have entered into an agreement under which a subsidiary of Unisplendour will make a $3.775 billion equity investment in Western Digital.

As per the terms of the investment, Unisplendour 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, Unisplendour 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 September 25, 2015.

Unisplendour 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 Unisplendour's ownership falls below 10%. In addition, Unisplendour has agreed to a five-year lock-up on its shares, with a limited number of shares becoming available for transfer each year.

Western Digital stated that the proceeds from the investment will go toward strengthening its balance sheet, providing financial flexibility and pursuing long-term strategic growth initiatives.

The closing of this investment transaction is subject to certain regulatory approvals and other customary closing conditions.