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Western Digital to sell part of Sandisk stake for $3.17 billion
Western Digital plans to sell part of its stake in flash memory unit Sandisk for USD 3.17 billion as the company seeks to cut debt, Reuters reports.
The secondary share sale, announced by Sandisk on Wednesday, is priced at a 7.7% discount to the company’s most recent closing price. The transaction involves swapping 5.8 million shares for debt held by affiliates of J.P. Morgan and BofA Securities.
Following the sale, Western Digital’s holding in Sandisk will drop to about 1.7 million shares, with an estimated value of nearly SUD 1 billion, according to Reuters calculations. The company intends to sell the remaining shares over time.
The transaction follows Western Digital’s spin-off of Sandisk last year and is part of the company’s ongoing strategy to focus exclusively on HDD solutions.
