Micron Technology, Inc. (NASDAQ:MU) has announced that its board of directors has approved a $0.1 per share dividend, for its stockholders, as of August 1, 2016. The company has already filed a form 8-K, in this regard and declared Wells Fargo Bank, as the rights agent for the payout. In addition to this, a rights agreement had also been agreed upon, on July 20. The company stated that the rights agreement had put in place, in order avoid ownership change.
MU also revealed, in its 8-K filing, that the rights agreement would be evaluated on an annual basis, by a committee of directors. This would be done to ensure that maintaining the rights agreement, remains in the best interest of the company. The committee would then communicate its findings to the board, which would then decide on the future of the agreement.
In addition to this, Micron Technology has shown keen interest in boosting its DRAM production capacity, in Taiwan. As per details from the company, it is considering to buy Cando’s production plant, in Taiwan. The plant is used by Cando to manufacture DRAM for touch-phones and other gadgets, by the company. However, Micron would not operate the plant itself, upon acquisition, but instead would give this responsibility to Powertech Technology.
The plant is expected to begin production, in early 2017 and is expected to be dedicated to the manufacture of mobile DRAM. If the reports are correct and the deal does happen, it would be another joint venture, between Powertech and Micron. In addition to this, Powertech also provides packaging and assembly services, to Micron in China. It should be noted here that Cando has applied for bankruptcy protection, claiming that its liabilities have exceeded its total assets. Micron itself is currently in a recovery process, as the demand for PCs begins to stabilize.
Micron Technology, Inc. (NASDAQ:MU) experienced a trade volume of 2,271, during the July 22 trading session, before reaching a close at $13.13 per share, 0.38% below that of the previous session.