Storage hardware vendor, Seagate, has announced a private share redemption transaction with electronics manufacturer, Samsung, in the amount of 32.7 million ordinary shares, representing around nine per cent of the former's shares outstanding as of the end of the first fiscal quarter of 2014.
Following the transaction, Samsung will continue to own about 12.5 million shares of Seagate. Additionally, Samsung Systems LSI Division executive vice-president, She-Woong Jeong, will remain on the Seagate board of directors.
Seagate chairman, president, and chief executive officer (CEO), Steve Luczo, said the company is pleased Samsung intends to continue to be a long-term strategic shareholders and business partner.
"Our success with the Samsung hard disk drive (HDD) products that we acquired has exceeded our expectations and we are very encouraged with our joint product development for enterprise solid state drives (SSDs)," he said.
Luczo also claims the transaction puts Seagate on track to meet its goal of returning approximately 70 per cent of operating cash flow to shareholders in the 2014 fiscal year, while continuing to make investments in Cloud, mobile, and open source storage.
Seagate announced it was acquiring Samsung's HDD business in April 2011 for $US1.4 billion in stock and cash. The transaction was completed in December of the same year.