Sandisk Corporation, through its subsidiary, has entered into an agreement for a strategic equity investment in Nanya Technology Corporation for approximately $1.0 billion. Concurrently, the companies have established a multi-year strategic supply arrangement for DRAM products to support Sandisk's long-term sourcing strategy.
Key Details
- Equity Investment: Sandisk will purchase approximately 139 million shares of Nanya common stock for ~$1.0 billion, representing a 3.9% stake in Nanya post-transaction.
- Supply Agreement: The companies entered a multi-year strategic agreement where Nanya will supply Sandisk with DRAM products.
- Investment Terms: The purchase price reflects a 15% discount to Nanya's 30-day average trading price. The shares are subject to a statutory three-year lock-up period.