Still short of cash, Tandon Corp has decided to withdraw almost completely from the disk drive business with which it made its name, and has agreed in principle to sell its Winchester drive business to Western Digital Corp, Irvine, California for $40m to $45m cash and other consideration and assumption of $34m in liabilities, mainly trade payables. For that sum, Western will get about $51m in assets, including the rest of the new Westan Pte Ltd joint venture in Singapore, and the disk drive engineering and manufacturing facilities, including plated media, in San Jose, Santa Clara and Singapore. Tandon retains all rights to one disk product – the Personal Data Pac removable Winchester dbive, and will be able to get disks from Western at very competitive terms and conditions. Tandon will concentrate on its Personalikes and subsystems, expected to be 85% of sales this quarter.
TANDON TO SELL ITS WINCHESTER FIXED DISK BUSINESS TO WESTERN DIGITAL FOR $75m
