WD Announces Successful Completion of Komag Acquisiton
05 September 2007 - 3:28PM
PR Newswire (US)
Strategic Acquisition Couples Access to Media Supply and Technology
with WD's Leading Head Technology and Hard Drive Integration
Capabilities LAKE FOREST, Calif., Sept. 5 /PRNewswire-FirstCall/ --
Western Digital Corp. (NYSE:WDC) today announced the expiration and
successful completion of its tender offer, through its indirect
wholly-owned subsidiary State M Corporation, for all outstanding
shares of Komag, Incorporated (NASDAQ:KOMG). The tender offer
expired at 7 a.m. EDT on Sept. 5, 2007. According to preliminary
information provided by Computershare, the depositary for the
tender offer, as of that time, approximately 28.9 million shares,
representing approximately 95.2% of Komag's outstanding shares,
were tendered and not withdrawn in the offer (including shares
tendered by notice of guaranteed delivery). State M Corporation
accepted all of such properly tendered shares. WD also announced
that the subsequent merger to finalize the acquisition closed
earlier today. As a result of the merger, all remaining outstanding
Komag shares, other than shares held by stockholders who properly
perfect appraisal rights under Delaware law, will be cancelled and
converted into the right to receive $32.25, net to the holder
thereof in cash, without interest, less any required withholding
taxes. Following the merger, Komag became an indirect wholly-owned
subsidiary of WD and changed its name to WD Media, Inc. "The
completion of this acquisition will strengthen our competitive
position in the worldwide hard drive industry," said John Coyne, WD
president and chief executive officer. "It ensures our ongoing
access to critical technology and supply, and improves our cost
structure. Our goal of profitable growth is enhanced by now having
both head and media operations integrated into our hard drive
business." Coyne added, "WD has a proven track record of
integrating a component business into our core HDD operations as
evidenced by our assimilation of magnetic heads beginning in 2003.
We believe that our new highly-skilled media team - with their
significant experience in perpendicular magnetic recording media
and their focus on operational excellence - will be an excellent
fit with the rest of WD's hard drive operations." A conference call
to discuss the Komag acquisition will be held Monday, Sept. 10,
2007 at 2 p.m. PDT/5 p.m. EDT. The conference call will be
accessible live or on an archived basis via the link below: Audio
Webcast: http://www.westerndigital.com/investor -- click on
"Conference Calls" Telephone Replay: 866-403-7100 (toll-free) or
+1-203-369-0572 (international) About WD WD, one of the storage
industry's pioneers and long-time leaders, provides products and
services for people and organizations that collect, manage and use
digital information. The company produces reliable,
high-performance hard drives that keep users' data accessible and
secure from loss. WD applies its storage expertise to consumer
products for external, portable and shared storage products. WD was
founded in 1970. The company's storage products are marketed to
leading systems manufacturers, selected resellers and retailers
under the Western Digital and WD brand names. Visit the Investor
section of the company's Web site (http://www.westerndigital.com/)
to access a variety of financial and investor information. This
press release contains forward-looking statements regarding WD's
beliefs regarding the strategic benefits and synergies of sourcing
media internally, as well as its expectations regarding its ability
to successfully integrate the operations of Komag into its own.
These forward-looking statements are based on WD's current
expectations and are subject to risks and uncertainties that could
cause actual results to differ materially from those expressed in
the forward-looking statements, including the risk that Komag's
operating systems will not be compatible with WD's operating
systems; the risk of failure to integrate Komag's media technology
with WD's head technology, or failure to leverage such integration,
quickly and effectively; the risk that WD will fail to successfully
manage relationships with Komag's suppliers; the risk that WD will
fail to manage successfully relationships with Komag's other
customers; the risk that WD will fail to successfully manage
relationships with its other media suppliers; potential
difficulties integrating and harmonizing financial reporting
systems; risks related to overall asset utilization, including the
need to operate at high levels of utilization to drive competitive
costs; the need for assured supply of components that WD does not
internally manufacture; and other risks and uncertainties listed in
WD's recent Form 10-K filed with the SEC on August 28, 2007, to
which your attention is directed. Readers are cautioned not to
place undue reliance on these forward-looking statements, which
speak only as of the date hereof, and WD undertakes no obligation
to update these forward-looking statements to reflect subsequent
events or circumstances. Western Digital, WD, and the WD logo are
registered trademarks of western digital technologies, inc. All
other trademarks mentioned herein belong to their respective
owners. (Logo:
http://www.newscom.com/cgi-bin/prnh/20000711/WDCLOGO)
http://www.newscom.com/cgi-bin/prnh/20000711/WDCLOGO DATASOURCE:
Western Digital Corp. CONTACT: Bob Blair, Investor Relations,
+1-949-672-7834, , or Steve Shattuck, Public Relations,
+1-949-672-7817, , both of Western Digital Corp. Web site:
http://www.westerndigital.com/
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