In late September, Western Digital Corporation announced that it expects to gain about $ 3.78 billion. 15% of its own shares in a deal with a Chinese company Unisplendour Corporation Limited (Unis), which is part of Tsinghua Holding. As a result of the transaction the Chinese are given the right to appoint a representative on the Board of Directors of WDC. American manufacturer of hard drives and solid state intended to use the proceeds from the deal with Chinese investors' funds to finance other transactions - the purchase SanDisk's assets, which was supposed to cost $ 19 billion, according to the original plan..
Yesterday, the US company had to declare that the local supervisory authorities have not given permission to sell a stake to Chinese investors, which would make them the largest shareholder of Western Digital Corporation. As always in such cases, the deal fell through because of reasons of protection of national interests of the USA in the sphere of defense. Unis representatives were forced to admit that they refuse to purchase WDC shares. Although the parties does not suffer direct material costs due to the failure of the transaction, WDC will not be able to use the proceeds from the sale of treasury shares for cash partial payment SanDisk's assets.
Accordingly, now the amount of the transaction with SanDisk reduced from previous $ 19 billion to a modest $ 15.8 billion SanDisk's shareholders still receive a premium to the market price of shares of the company -.. WDC will pay 16% more than any bidder on the stock exchange have done yesterday.