SAN JOSE, Calif.--(BUSINESS WIRE)--
Western Digital Corp. (NASDAQ: WDC) today issued the following statement
regarding Toshiba Corporation's selection of a consortium led by
Korea-based SK Hynix Inc. and Bain Capital Japan, with funding provided
by Japanese government funds Innovation Network Corporation of Japan and
Development Bank of Japan Inc., as the preferred bidder regarding the
sale of Toshiba's interests in three NAND flash-memory joint ventures
operated with Western Digital's SanDisk subsidiaries ("Flash JVs"):
Toshiba Corporation continues to ignore both SanDisk's consent rights
and the dual-track legal process currently underway. The language of the
relevant agreements is clear: Toshiba Corporation has no right to
transfer its JV interests to a third party without SanDisk's consent.
SanDisk has not given its consent to any transaction, and will continue
to protect its JV interests and preserve its rights through both its
request for injunctive relief and the arbitration process.
We note that Toshiba has acknowledged and validated SanDisk's consent
rights on multiple occasions. Furthermore, certain parties identified in
Toshiba's announcement have previously been notified by Western Digital
that it considers any effort to aid Toshiba's breach of its contractual
obligations to SanDisk, including any agreement to directly or
indirectly transfer any portion of the joint venture, as tortious
interference with contract.
On June 15, 2017, Western Digital's SanDisk subsidiaries filed a request
for injunctive relief seeking to prevent Toshiba Corporation from
transferring its JV interests until the request of the subsidiaries for
injunctive relief in arbitration is decided by the arbitral tribunal.
The arbitration filed on May 14, 2017, with the ICC International Court
of Arbitration continues to move forward in parallel.
We remain confident in our consent rights and our legal position and
look forward to the hearing for injunctive relief, which is scheduled
for July 14, 2017.
About Western Digital
Western Digital is an industry-leading provider of storage technologies
and solutions that enable people to create, leverage, experience and
preserve data. The company addresses ever-changing market needs by
providing a full portfolio of compelling, high-quality storage solutions
with customer-focused innovation, high efficiency, flexibility and
speed. Our products are marketed under the HGST, SanDisk and WD brands
to OEMs, distributors, resellers, cloud infrastructure providers and
consumers. Financial and investor information is available on the
company's Investor Relations website at investor.wdc.com.
This news release contains certain forward-looking statements, including
statements concerning the Flash JVs, SanDisk's rights under the JV
agreements and Western Digital's or SanDisk's actions in response to
Toshiba's announcement that it has declared a preferred bidder regarding
the sale of Toshiba's interests in the Flash JVs. There are a number of
risks and uncertainties that may cause these forward-looking statements
to be inaccurate including, among others: uncertainties with respect to
the company's business ventures with Toshiba; volatility in global
economic conditions; business conditions and growth in the storage
ecosystem; impact of competitive products and pricing; market acceptance
and cost of commodity materials and specialized product components;
actions by competitors; unexpected advances in competing technologies;
our development and introduction of products based on new technologies
and expansion into new data storage markets; risks associated with
acquisitions, mergers and joint ventures; difficulties or delays in
manufacturing; and other risks and uncertainties listed in the company's
filings with the Securities and Exchange Commission (the "SEC"),
including the company's Form 10-Q filed with the SEC on May 8, 2017, to
which your attention is directed. You should not place undue reliance on
these forward-looking statements, which speak only as of the date
hereof, and the company undertakes no obligation to update these
forward-looking statements to reflect subsequent events or circumstances.
Western Digital, WD and SanDisk are registered trademarks or trademarks
of Western Digital Corporation or its affiliates in the U.S. and/or
other countries. Other trademarks, registered trademarks, and/or service
marks, indicated or otherwise, are the property of their respective
owners. © 2017 Western Digital Corporation or its affiliates. All rights
View source version on businesswire.com: http://www.businesswire.com/news/home/20170620006631/en/
Western Digital Corp.
Frank, Wilkinson Brimmer Katcher
Eric Brielmann / Jed Repko / Ed
415-869-3950 / 212-355-4449
Source: Western Digital Corp.
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