WDC just spun off 80.1% of SanDisk. Below they explain what they may do with the remaining 19.9% of SanDisk in the coming year. A split-off may be in the works here, meaning a stock-for-stock swap at a discount, as we saw with the Cummins-Atmus deal last year.
Jim
Reasons for WDC’s Retention of 19.9% of Spinco Common Stock
WDC’s plan to transfer less than all of the Spinco common stock to its stockholders in the distribution is motivated by its desire to establish, in an efficient and non-taxable, cost-effective manner, an appropriate capital structure for each of WDC and Spinco, including by reducing, directly or indirectly, WDC’s indebtedness during the 12-month period following the distribution. WDC will dispose of all of the Spinco common stock that it retains after the distribution through one or more subsequent exchanges of Spinco common stock for WDC debt held by WDC creditors and/or through distributions of Spinco common stock to WDC stockholders as dividends or in exchange for outstanding shares of WDC common stock, in each case during the 12-month period following the distribution.