SanDisk expects Western Digital merger, resulting fundamental change to take effect April 20

By Angela McDaniels

Tacoma, Wash., March 1 – SanDisk Corp. told the holders of its 1.5% convertible senior notes due 2017 and 0.5% convertible senior notes due 2020 that it expects its upcoming merger with Western Digital Corp., to become effective April 20. The merger constitutes a fundamental change under the notes.

The merger remains subject to the receipt of stockholder approval of both companies and of regulatory clearances in China and South Africa, according to a company news release.

Holders may surrender the notes for conversion from March 8 until a date that will be at least 20 business days after the actual effective date of the merger.

Noteholders will have the right to convert their notes at a temporarily increased conversion rate shortly following the closing of the merger, and SanDisk expects that noteholders will choose to do so.

Western Digital, an Irvine, Calif.-based maker of storage solutions for digital content, has agreed to purchase SanDisk, a Milpitas, Calif.-based maker of flash storage cards, for $86.50 per share, or a total equity value of about $19 billion.

© 2015 Prospect News.
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