Western Digital Comments on Toshiba’s Intent to Transfer Flash JV Interests to a Consortium Led by SK Hynix and Bain Capital
September 20 2017 - 11:40AM
Business Wire
Western Digital Corp. (NASDAQ: WDC) today commented on Toshiba
Corporation’s (“Toshiba”) proposed transfer of its interests in its
NAND flash-memory joint ventures operated with Western Digital’s
SanDisk subsidiaries (“JVs”) to a consortium led by Korea-based SK
Hynix Inc. and Bain Capital:
Our goal all along has been to reach a
mutually beneficial outcome that addresses all issues for Toshiba
and its stakeholders, and most importantly, ensures the longevity
and continued success of the JVs. Throughout our ongoing dialogue
with Toshiba, we have remained flexible and have submitted numerous
proposals that have specifically addressed all of Toshiba’s
concerns. 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.
Furthermore, it is troubling that Toshiba
would pursue this transaction without SanDisk’s consent, as the
language in the relevant JV agreements is unambiguous, and courts
have entered multiple rulings in favor of protecting SanDisk’s
contractual rights. Toshiba has also acknowledged and validated
SanDisk’s legitimate consent rights on multiple occasions.
Western Digital remains confident that SanDisk will succeed on
the merits of its arbitration requests filed on May 14, 2017, and
July 5, 2017, and those cases continue to move forward in the ICC
International Court of Arbitration. In addition, on July 28, 2017,
the Superior Court of California for the County of San Francisco
entered a stipulated order preventing Toshiba from closing any
transfer of its JV interests without providing at least 14 days
advance notice to SanDisk.
About Western Digital
Western Digital is an industry-leading provider of storage
technologies and solutions that enable people to create, leverage,
experience and preserve data. The company addresses ever-changing
market needs by providing a full portfolio of compelling,
high-quality storage solutions with customer-focused innovation,
high efficiency, flexibility and speed. Our products are marketed
under the HGST, SanDisk and WD brands to OEMs, distributors,
resellers, cloud infrastructure providers and consumers. Financial
and investor information is available on the company's Investor
Relations website at investor.wdc.com.
Forward-Looking Statements
This news release contains certain forward-looking statements,
including statements concerning the JVs, SanDisk’s rights under the
JV agreements and its actions to protect such rights, ongoing
proceedings with respect to those rights, and Western Digital’s or
SanDisk’s actions in response to Toshiba’s announcement that it
intends to transfer its interests in the JVs to a consortium led by
SK Hynix and Bain Capital. There are a number of risks and
uncertainties that may cause these forward-looking statements to be
inaccurate including, among others: uncertainties with respect to
the company’s business ventures with Toshiba; volatility in global
economic conditions; business conditions and growth in the storage
ecosystem; impact of competitive products and pricing; market
acceptance and cost of commodity materials and specialized product
components; actions by competitors; unexpected advances in
competing technologies; our development and introduction of
products based on new technologies and expansion into new data
storage markets; risks associated with acquisitions, mergers and
joint ventures; difficulties or delays in manufacturing; and other
risks and uncertainties listed in the company's filings with the
Securities and Exchange Commission (the “SEC”), including the
company’s Form 10-K filed with the SEC on Aug. 29, 2017, to which
your attention is directed. You should not place undue reliance on
these forward-looking statements, which speak only as of the date
hereof, and the company undertakes no obligation to update these
forward-looking statements to reflect subsequent events or
circumstances.
Western Digital, WD and SanDisk are registered trademarks or
trademarks of Western Digital Corporation or its affiliates in the
U.S. and/or other countries. Other trademarks, registered
trademarks, and/or service marks, indicated or otherwise, are the
property of their respective owners. © 2017 Western Digital
Corporation or its affiliates. All rights reserved.
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version on businesswire.com: http://www.businesswire.com/news/home/20170920005964/en/
Western Digital Corp.United
StatesMedia Contact:Jim Pascoe,
408-717-6999jim.pascoe@wdc.comorInvestor Contact:Bob Blair,
949-672-7834robert.blair@wdc.comorJoele Frank, Wilkinson Brimmer
KatcherEric Brielmann / Jed Repko / Ed Trissel415-869-3950 /
212-355-4449wdcmedia@joelefrank.comorJapanMedia Contacts:Emi Hatano,
090-5765-9730emi.hatano@sandisk.comorAshton ConsultingJohn Sunley /
Brendan Jennings03 5425-7220 / 090ー7416-0180 / 050
7576-6190WDC_JapanPR@ashton.jp
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