Memory chip maker Western Digital Corp said on Tuesday it will receive $900 million through a convertible preferred stock deal from private equity firm Apollo Global Management Inc and hedge fund Elliott Management Corp. Western Digital said the preferred stock it sold to Apollo and Elliott has a conversion price of $47.75 per share, which is approximately a 9% premium on its closing price of $43.95 on Tuesday. Last year, Western Digital launched a review of strategic alternatives, including options for splitting off its flash-memory and hard-drive businesses, after activist Elliott disclosed a stake of nearly $1 billion in the company and pushed it to separate those businesses.
(Bloomberg) -- Western Digital Corp. is receiving a $900 million investment led by Apollo Global Management Inc., getting financial firepower at a tough time for the memory industry that could see further consolidation. The chipmaker’s stock fell 6% in late trading on a disappointing revenue forecast. Most Read from Bloomberg8,000 Layoffs Don’t Exactly Scream Family ValuesPutin’s War in Ukraine Pushes Ex-Soviet States Toward New AlliesSony Slashes PlayStation VR2 Headset Output After Pre-Orders
By Yasin Ebrahim