China's government-controlled Tsinghua will buy 15 percent of Irvine-based Western Digital for $3.8 billion to become its biggest shareholder
Sept. 30, 2015 Updated 2:01 p.m.
By Bloomberg News
A business unit of Tsinghua University agreed to pay $3.8 billion for 15 percent of hard-drive maker Western Digital Corp., in what would be China?s biggest technology share purchase in the U.S.
Tsinghua Unisplendour Corp. will buy new shares issued by the U.S. company at $92.50 apiece, 33 percent higher than the Irvine-based company?s last close, the companies said. The stock climbed to as high as $80.11 in early U.S. trading, up 15 percent from Tuesday.
The deal would make the Chinese government-controlled company Western Digital?s biggest shareholder and mark the latest in a wave of acquisitions abroad by the country?s corporations, part of President Xi Jinping?s efforts to elevate their global influence.
The Western Digital deal is Unisplendour?s biggest acquisition this year after agreeing in May to pay $2.3 billion for a controlling stake in Hewlett-Packard?s local server venture. Tsinghua, one of China?s most prestigious universities, had also been interested in buying U.S. memory-chip maker Micron through its Tsinghua Unigroup arm, people familiar with the matter have said.
Unisplendour, which last year accepted a $1.5 billion investment from Intel, will have a representative on Western Digital?s board who will be restricted from participating in talks involving government contracts, sales or other sensitive matters, Western Digital said. It won?t control, own or manage Western Digital?s intellectual property, it said.
Sept. 30, 2015 Updated 2:01 p.m.
By Bloomberg News
A business unit of Tsinghua University agreed to pay $3.8 billion for 15 percent of hard-drive maker Western Digital Corp., in what would be China?s biggest technology share purchase in the U.S.
Tsinghua Unisplendour Corp. will buy new shares issued by the U.S. company at $92.50 apiece, 33 percent higher than the Irvine-based company?s last close, the companies said. The stock climbed to as high as $80.11 in early U.S. trading, up 15 percent from Tuesday.
The deal would make the Chinese government-controlled company Western Digital?s biggest shareholder and mark the latest in a wave of acquisitions abroad by the country?s corporations, part of President Xi Jinping?s efforts to elevate their global influence.
The Western Digital deal is Unisplendour?s biggest acquisition this year after agreeing in May to pay $2.3 billion for a controlling stake in Hewlett-Packard?s local server venture. Tsinghua, one of China?s most prestigious universities, had also been interested in buying U.S. memory-chip maker Micron through its Tsinghua Unigroup arm, people familiar with the matter have said.
Unisplendour, which last year accepted a $1.5 billion investment from Intel, will have a representative on Western Digital?s board who will be restricted from participating in talks involving government contracts, sales or other sensitive matters, Western Digital said. It won?t control, own or manage Western Digital?s intellectual property, it said.
