Become a Member
  • Track your favourite stocks
  • Create & monitor portfolios
  • Daily portfolio value
Sign Up
Quickpicks
Add shares to your
quickpicks to
display them here!

Strategic Alliance with Technology

19th Apr 2011 10:02

RNS Number : 1651F
Samsung Electronics Co. Ld
19 April 2011
 



 

 

Strategic Alliance with Seagate Technology

 

On April 19, 2011, Samsung Electronics Co., Ltd. and Seagate Technology plc announced that they entered into an agreement to expand their strategic relationship.

Details of the agreement

1. Main objective: To strengthen competitiveness through strategic alliance

2. Major terms of the agreement:

·; Samsung Electronics will transfer assets related to its hard disk drive (HDD) operations to Seagate.

- Transfer price : $1.375 billion

- Method of payment : 50% with Seagate's ordinary shares (about 9.6% of its outstanding shares) and 50% in cash

 Upon closing, Samsung will receive Seagate ordinary shares valued at $687.5 million (45.2 million shares, or approximately 9.6% ownership of Seagate, which is based on Seagate's 30-day volume weighted average stock price prior to signing), plus $687.5 million in cash.

·; Samsung Electronics and Seagate will strengthen their strategic relationship as follows.

- Extending and enhancing the existing patent cross-license agreement between the companies

- The two companies will strengthen efforts to co-develop enterprise storage solutions

- Samsung Electronics will supply NAND to Seagate's solid state drive (SSD) products

- Seagate will supply hard disk drives to Samsung Electronics' PCs and notebooks

 Samsung will have a right to designate a nominee to join Seagate's Board of

 Directorsfollowing closing. 

3. Others

·; Transfer of assets is planned within 2011, but the effective date is not decided yet since the agreement has to undergo related authorities' anti-trust investigation and approval procedure.

This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
SALLIFETSAIALIL

Related Shares:

Samsung El.gdr
FTSE 100 Latest
Value8,632.33
Change89.77