Unisplendour Corp. Ltd. will invest about $3.8 billion in Western Digital Corp., taking a 15% stake in the Irvine-based storage products maker.
The Beijing-based company will buy a newly issued block of stock for $92.50 a share, the two companies said.
The deal will give Unisplendour about 41.1 million shares, with a five-year lock-up. The company will be permitted to transfer a limited number of shares each year.
The investment “will help facilitate our growth as we look to capitalize on the many opportunities and changes within the global storage industry,” said Western Digital Chief Executive Steve Milligan in a statement.
Unisplendour will nominate one new member of Western Digital’s board and retain the seat as long as it owns at least 10% of the company.
Western Digital shares were up 15% to $79.50 and an $18.4 billion market cap in morning trading.
