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SanDisk rejects Samsung’s purchase offer
As expected, Samsung Electronics has attempted to acquire SanDisk. The South Korean manufacturer offered $ 26 for each SanDisk share, which equates to a total deal of approximately $ 5.85 billion. Doll.
SanDisk Rejects Offer. But this did not discourage Samsung, which has not abandoned its intentions.
SanDisk’s board of directors believes a potential buyer grossly underestimates the company given its long-term prospects. In other words, the offer received does not match the benefits that Samsung can get from the SanDisk acquisition.
For the first time, Samsung announced its intention to purchase on May 22 this year. At that time, the price of one SanDisk share was $ 28.75. SanDisk believes there is now an opportunistic attempt to take advantage of the company’s current cyclical downturn in the company’s share price. The situation has changed a lot in the past year, according to Samsung, as can be seen from SanDisk’s performance. To remain competitive, SanDisk needs investment and expansion in the coming months – cost cuts alone are not enough.
If purchased, Samsung will be able to save billions of dollars in royalties over the next decade (currently over $ 350 million in annual fees). Doll.).
Recall that SanDisk is the world’s largest manufacturer of memory cards. The company is estimated to consume up to 15% of the world’s total NAND chips. A significant portion of this amount is produced by a joint venture between SanDisk and Toshiba.
Sources: Reuters, DigiTimes