China's Unisplendour Corporation will invest USD80.58 million to build a joint venture with Western Digital Corp., and Unisplendour will hold a 51% stake.
The new JV will have registered capital of USD158 million. Of that total, Unisplendour will invest USD56.58 million in cash and its subsidiary Unissoft (Wuxi) Group Co., Ltd. will invest USD24 million in stock rights. Unisplendour and its subsidiary will own a 51% stake in the JV, while Western Digital will hold the remaining 49% stake.
The JV will mainly focus on sales, import and export, and research and development of computer software technologies, computer systems, and information systems and solutions.
Western Digital was established in America in 2001. By July 3, 2015, which is the end of 2015 financial year of Western Digital, the company's audited assets were USD15.181 billion and its shareholders' equity was USD9.219 billion. During the 2015 financial year, the company's net operating revenue was USD14.572 billion and its net profit was USD1.465 billion.
Prior to this, Unisplendour and Western Digital jointly announced in September 2015 that Unisplendour's subsidiary would invest USD3.8 billion, which was about CNY24 billion, to acquire 15% of Western Digital ordinary shares. With the acquisition, Unisplendour would become the major shareholder of Western Digital and gain one position in the board of Western Digital.