Western Digital Says Disappointed Over Toshiba's Action On NAND Flash-Memory JVs

(RTTNews) - Western Digital Corp. (WDC), a provider of storage technologies, on Wednesday expressed disappointment over Toshiba Corp.'s plans to transfer its interests in its NAND flash-memory joint ventures operated with Western Digital's SanDisk subsidiaries. The company said it remains confident in its ability to protect JV interests and consent rights.

In a statement, the company said, "We are disappointed that Toshiba would take this action despite Western Digital's tireless efforts to reach a resolution that is in the best interests of all stakeholders. Throughout our ongoing dialogue with Toshiba, we have been flexible, constructive and have submitted numerous proposals to specifically address Toshiba's stated concerns."

The company added that its goal has been, and remains, to reach a mutually beneficial outcome that satisfies the needs of Toshiba and its stakeholders, and most importantly, ensures the longevity and continued success of the JVs.

Western Digital also noted that it is surprising that Toshiba would continue to pursue a transaction with a consortium led by Korea-based SK Hynix Inc. and Bain Capital Japan without SanDisk's consent. The company said the language in the relevant JV agreements is unambiguous, and multiple courts have ruled in favor of protecting SanDisk's contractual rights.

Western Digital's arbitration requests filed on May 14, 2017, and July 5, 2017, continue to move forward in the ICC International Court of Arbitration.