Western Digital to Sell $3.09B SanDisk Stake at 9.4% Discount
Western Digital plans to sell its entire remaining SanDisk stake, targeting roughly $3.09 billion through a secondary offering priced at $535 to $555 per share, a discount of up to 9.4%. The transaction, structured as a share-for-debt exchange with JPMorgan and Bank of America, meets a sub-year post-spinoff tax deadline.
1. Offering Details
Western Digital is marketing 7.51 million SanDisk shares at $535–$555 each to raise about $3.09 billion, representing a discount of up to 9.4% relative to recent closing prices.
2. Transaction Structure
The shares will be exchanged for debt held by affiliates of JPMorgan Chase and Bank of America, positioning the sale as a coordinated balance-sheet maneuver rather than an open-market disposal.
3. Market Demand
Investor appetite appears firm, with the deal reportedly well oversubscribed despite a 3% drop in SanDisk shares, reflecting strong demand driven by global flash memory shortages.
4. Strategic Implications
Completing the disposal within one year of the SanDisk spinoff allows Western Digital to avoid potential tax liabilities and bolsters its liquidity position for future investments.