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Technology Stocks : WDC, NAND, NVM, enterprise storage systems, etc.

SNDK 175.49

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Oct 28 3:59 PM EDT

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From: Sam	10/26/2023 7:30:19 AM
	of 4818

SK Hynix to not agree to Kioxia-Western Digital merger Oct. 26, 2023 5:20 AM ET Western Digital Corporation (WDC) TOSBF, SSNLF, TOSYY By: Ravikash, SA News Editor 1 Comment SK Hynix will not agree to the merger of Kioxia and Western Digital's (NASDAQ: WDC) flash memory business due to impact on the value of the company's investment. South Korean memory chipmaker SK Hynix, which has an indirect stake in Tokyo-based Kioxia, noted that the deal undervalued its stake. SK Hynix "is not agreeing to the deal at this time in light of the overall impact on the value of the company’s investment in Kioxia," CFO Kim Woohyun said on the company's earnings call on Thursday. Woohyun added that the company will make a decision for the sake of all stakeholders. However, he did not disclose any additional reasons nor commented further due to confidentiality agreements. SK Hynix became an indirect shareholder in Kioxia when a Bain Capital-led consortium acquired a controlling stake from Toshiba ( OTCPK:TOSBF) ( OTCPK:TOSYY). However, the Korean company's stake in the Japanese company is unknown. According to a Bloomberg News report, several people said SK Hynix has no veto rights over the deal, while others noted that company’s consent is necessary because it is a major investor. Last week, it was reported that several Japanese banks were expected to commit 1.9T yen ($12.7B) in financing for the merger. It was noted that the SK Hynix's resistance is not impacting the bank's decision to finance the deal. continues at seekingalpha.com

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