Western Digital To Continue With Arbitration Process
SAN JOSE, Calif.--(BUSINESS WIRE)--
Western Digital Corp. (NASDAQ: WDC) today issued the following in
response to Toshiba Corporation's ("Toshiba") statement that it will
transfer back the three NAND flash-memory joint ventures ("the JVs")
operated with Western Digital from Toshiba Memory Corporation ("TMC"):
Toshiba's representation that it will "revert to itself" the JV
interests from TMC confirms Western Digital's position that any attempt
by Toshiba to transfer those interests would breach SanDisk's
contractual consent rights. Toshiba's new action does not resolve
SanDisk's claims in the pending arbitration; in fact, Toshiba has simply
replaced one attempt to circumvent SanDisk's consent rights with
another. The arbitration will therefore continue.
Western Digital continues to believe that any actions by Toshiba to
transfer its JV interests to a third party without SanDisk's consent
clearly violate the anti-transfer provisions of the joint venture
agreements. Western Digital does not believe that Toshiba has cured its
breach of the JV Agreements. The JV interests at stake here, with
respect to which SanDisk has consent rights, include all rights and
assets associated with the JVs and form the core value of what Toshiba
improperly transferred to TMC. Toshiba's comment in its May 31, 2017
letter to Western Digital that it is transferring back to Toshiba no
more than 5% of the value of the bids that Toshiba has received for TMC
makes it clear that the full JV interests over which SanDisk has consent
rights have not in fact been transferred back to Toshiba and that
Toshiba is still planning on transferring those JV interests in clear
breach of SanDisk's valuable and essential contractual rights.
We firmly believe that Western Digital is best positioned to assist
Toshiba in addressing its challenges and advancing its legacy of
technology innovation in Japan. We remain steadfast in our desire to
work with Toshiba to achieve a win-win solution and favorable outcome
for all involved.
On May 14, 2017, Western Digital announced that several of its SanDisk
subsidiaries filed a Request for Arbitration with the ICC International
Court of Arbitration related to three NAND flash-memory joint ventures
operated with Toshiba. The arbitration demand seeks, among other things,
injunctive relief preventing Toshiba from further breaching the JV
agreements by transferring its JV interests, or any interest in an
affiliate that holds its JV interests, without SanDisk's consent. Per
the provisions of the joint venture agreements, the arbitration will
take place in San Francisco, California.
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.
Forward-Looking Statements
This news release contains certain forward-looking statements, including
statements concerning the Flash JVs, SanDisk's rights under the joint
venture agreements and SanDisk's actions in response to Toshiba's claims
regarding 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
reserved.
View source version on businesswire.com: http://www.businesswire.com/news/home/20170602005764/en/
Western Digital Corp.
Media Contact:
Jim Pascoe, 408.717.6999
jim.pascoe@wdc.com
or
Investor
Contact:
Bob Blair, 949.672.7834
robert.blair@wdc.com
or
Joele
Frank, Wilkinson Brimmer Katcher
Eric Brielmann / Jed Repko / Ed
Trissel
415-869-3950 / 212-355-4449
wdcmedia@joelefrank.com
Source: Western Digital Corp.
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