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The
cash-and-stock offer values SanDisk at $86.50 per share, or a
total equity value of about $19 billion, using a five-day volume
weighted average price ending on Oct. 20 of $79.60 per share of
Western Digital stock.
SanDisk's shares rose 6.4 percent to $80 in pre-market trading.
Western Digital's shares were down 1.1 percent at $74.
Demand for cheaper chips and new products to power
Internet-connected gadgets, as well as a push from technology
companies to consolidate suppliers, has led to record levels of
dealmaking in the semiconductor sector this year.
The value of the SanDisk acquisition will depend on the closing
and approval of an investment from a unit of China's
state-backed Tsinghua Holdings Co Ltd [TSHUAA.UL], Unisplendour
Corp Ltd in Western Digital, the companies said on Wednesday.
The deal is expected to close in the third calendar quarter of
2016.
(Reporting by Abhirup Roy and Devika Krishna Kumar in Bengaluru;
Editing by Don Sebastian and Anil D'Silva)
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