Elpida Memory today announced that it reached an agreement with Walton Advanced Engineering, Inc., in which Walton will purchase from Elpida 7,500 preferred shares in Elpida subsidiary EBS, Inc.
The value of the share purchase is estimated at JPY 3.75 billion (US$50 million).
Walton and Elpida expect to complete the share transaction by mid-December.
Walton and Elpida have a long-standing strategic partnership. The share transaction is expected to strengthen the relationship between the two companies. Also, the share transfer will help bolster Elpida's financial strength. In the face of the severe DRAM market and turmoil in global financial markets, including record-breading yen appreciation, Elpida is looking at multiple opportunities to improve its financial position.