Lite-On Technology said the transfer of its solid-state drive unit to its new owner, Kioxia Holdings Corporation, will be delayed. The reason is the impossibility due to the COVID-19 pandemic to complete all necessary actions by the due date.
It was originally planned to complete the transfer before April 1, 2020. After negotiations with Kioxia Holdings Corporation, the transaction closing date has been rescheduled. Lite-On Technology believes that the delay will not affect the work of the unit.
The Lite-On Technology Board approved the transfer of the division to Kioxia Holdings Corporation in exchange for shares on August 30, 2019. The transaction provides for the transfer of assets, stocks, equipment, personnel, intellectual property, technology and relations with customers and suppliers. The deal was tentatively estimated at $ 165 million. Recall that Lite-On Technology is the owner of the SSD Plextor brand.