Western Digital (WDC) said Wednesday it has signed exchange agreements with institutional investors under which it will receive nearly 1.9 million shares of its own stock in exchange for 653,203 shares of Sandisk (SNDK).

The exchanges are expected to settle on Thursday, Western Digital said.

Western Digital said that upon settlement, it will continue to own about 1.04 million shares of Sandisk, which it intends to dispose of in one or more exchanges for Western Digital debt held by creditors and/or in exchange for outstanding shares of Western Digital common stock and/or through distributions to shareholders as dividends.

Western Digital shares were fractionally higher in early trading Wednesday, while Sandisk was down 0.5%.

Price: 467.20, Change: +1.94, Percent Change: +0.42