U.S. data storage company Western Digital Corp said Chinese state-backed Unisplendour Corp Ltd would invest $3.78 billion in the company for a 15 percent stake.

Western Digital shares rose about 10 percent to $75.99 in premarket trading on Wednesday.

The company will issue new shares to Unisplendour at $92.50 each, a 33.3 percent premium to Western Digital’s Tuesday close.

Unisplendour, owned by Tsinghua Holdings, will have the right to nominate one representative to Western Digital’s board. The board representative right terminates if Unisplendour’s ownership falls below 10 percent.

Unisplendour has agreed to a five-year lock-up on the shares, during which it would have voting restrictions, Western Digital said.

Western technology companies have struggled to win customers in China after former U.S. National Security Agency contractor Edward Snowden’s revelations of cyberspying program involving U.S. firms.

Many companies are now seeking local partners in China or looking to sell off assets altogether to Chinese buyers.

(Reporting by Ankit Ajmera in Bengaluru; Editing by Kirti Pandey)

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