SAN JOSE, Calif.–(Business WIRE)–Jun 7, 2022–
Western Digital Corporation, (“Western Digital”) (Nasdaq: WDC) right now announced that it is examining likely strategic possibilities aimed at even further optimizing prolonged-time period benefit for its shareholders. The Govt Committee of the Western Digital Board, chaired by Western Electronic CEO, David Goeckeler, will oversee the assessment course of action and entirely appraise a detailed range of choices, which includes alternatives for separating its current market-leading Flash and HDD franchises. Subsequent constructive dialogue with many of Western Digital’s shareholders, including one of the company’s most significant investors, Elliott Financial commitment Management L.P. (with each other with its affiliate marketers, “Elliott”), this review builds on Western Digital’s ongoing efforts to generate innovation-led advancement and develop shareholder worth.
“The Board is aligned in the belief that maximizing worth creation warrants a in depth evaluation of strategic options focused on structural alternatives for the company’s Flash and HDD companies,” reported Goeckeler. “Through this process, we are actively participating in a wide array of strategic and economic possibilities that will assist additional improve the value of Western Digital, together with Elliott’s give to make investments incremental fairness capital in our Flash Company. We glance forward to continuing our constructive dialogue with Elliott as this method unfolds.”
Elliott Handling Husband or wife Jesse Cohn and Senior Portfolio Manager Jason Genrich claimed, “Western Digital is strongly positioned in an market that signifies a persuasive expansion possibility, and we have self-confidence in David and his management team’s execution, strategic vision and concentration on shareholder worth. We’re encouraged by the beneficial direction of our discussions so considerably, and by Western Digital’s openness to thinking of a complete separation of its Flash company. We are delighted that Western Digital’s Board is conducting this review, and Elliott is ready to give strategic sources and supplemental money to assist the firm comprehend the total worth of the two of its enterprises.”
In conjunction with the strategic evaluate approach, Western Electronic and Elliott have signed a customary non-disclosure agreement and a letter agreement this sort of letter settlement will be submitted on a Kind 8-K with the Securities and Trade Commission.
Qatalyst Partners and Lazard are serving as Western Digital’s economic advisors and Skadden, Arps, Slate, Meagher & Flom LLP is serving as Western Digital’s authorized counsel.
Western Digital is on a mission to unlock the likely of facts by harnessing the risk to use it. With Flash and HDD franchises, underpinned by progress in memory systems, we make breakthrough innovations and potent details storage answers that allow the entire world to actualize its aspirations. Main to our values, we figure out the urgency to battle climate alter and have fully commited to bold carbon reduction ambitions authorised by the Science Based Targets initiative. Study more about Western Electronic and the Western Digital®, SanDisk® and WD® brand names at www.westerndigital.com.
This push release includes ahead-hunting statements inside of the indicating of federal securities laws, such as statements relating to the Company’s assessment of strategic choices. The Company’s overview of strategic alternatives may well not result in a separation of the Company’s flash business enterprise, a advice that a transaction take place or outcome in a accomplished transaction, and any transaction that happens could not increase shareholder worth. The ahead-wanting statements contained in this push release are primarily based on management’s latest expectations and are matter to challenges and uncertainties that could bring about precise results to differ materially from individuals expressed or implied in the ahead-wanting statements, including: long run responses to and outcomes of the COVID-19 pandemic volatility in world wide economic ailments together with in the personal debt and fairness marketplaces regulatory limits contractual limitations effect of organization and market place conditions effects of competitive merchandise and pricing influence of tax treatment method threats involved with restructurings, acquisitions, divestitures, mergers, joint ventures and our strategic interactions our sizeable stage of credit card debt and other financial obligations modifications to our relationships with key customers steps by opponents and other hazards and uncertainties shown in the Company’s filings with the Securities and Trade Commission (the “SEC”), like the Company’s Form 10-K submitted with the SEC on August 27, 2021, to which your focus is directed. You really should not area undue reliance on these forward-wanting statements, which discuss only as of the day hereof, and the Company undertakes no obligation to update or revise these forward-seeking statements to reflect new information and facts or situations, except as required by law.
©2022 Western Digital Company or its affiliates. All legal rights reserved. Western Digital, the Western Digital structure, the Western Electronic brand, are registered trademarks or logos of Western Digital Corporation or its affiliates in the US and/or other countries.
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PUB: 06/07/2022 08:40 PM/DISC: 06/07/2022 08:42 PM
Copyright Business Wire 2022.