China's state-backed Tsinghua Holdings Co Ltd plans to buy a 15 percent stake in U.S. data storage company Western Digital Corp (WDC). Tsinghua-owned Unisplendour Corp Ltd, which has listings on Shenzhen Stock Exchange will invest $3.78 billion in Western Digital to boost its technology portfolio and get the right to nominate one representative to the U.S. company's board, the companies said on Wednesday. Unisplendour will buy newly issued Western Digital shares at $92.50 each, a premium of about 33 percent to the stock's Tuesday close. Shares of Western Digital, whose revenue has fallen in seven of the past nine quarters, rose over 16 percent to $80.74. The company has lost more than a third of its market value this year. Tsinghua is also in the process of buying a 51 percent stake in Hewlett-Packard Co.'s China-based data-networking business. I am positive about this development because the investment will help Western Digital establish better relationships with Chinese authorities and give it flexibility to buy back stock and pursue acquisitions. Also, the cash infusion could allow Western Digital to advance its flash and solid-state storage business. Despite yesterday's surge WDC is still worth buying. I think we can see it around $100 in the nearest 6 months. $WDC, Western Digital Corporation / 1440