Hyundai says it will not bid for Hynix stake

Jul 06, 2011

South Korea's Hynix Semiconductor Wednesday lost its sole potential buyer after shipmaking giant Hyundai Heavy Industries said it would not bid for a stake in the world's second-largest memory chip maker.

Hyundai Heavy, the world's largest shipbuilder, announced it would not seek the 15 percent stake held by creditors despite growing speculation it was interested.

The announcement left no potential buyers for Hynix's creditors, who wanted to select a preferred bidder in August and complete the sale by the end of the year.

The creditors have been trying for years to sell their shares in Hynix after taking control of it in 2001 following several debt-for-equity swaps when the almost collapsed due to weak market conditions.

The creditors, led by Korea Exchange Bank (KEB), earlier said they would accept preliminary bids by Friday.

"We have decided not to submit a bid for ," Hyundai said in a regulatory filing.

"Acquiring Hynix would not generate business synergies with our existing businesses. There seems to be no win-win, or complementary, effect between the shipbuilding industry and the ."

The creditors' previous attempts to sell their stakes have been dogged by uncertainties over the chipmaking sector and the need for huge investment.

In February they invited bids but failed to attract any interest. In November 2009 Hyosung Corp, the sole bidder in the first sale attempt, dropped out.

KEB is the biggest shareholder with a 3.42 percent stake, followed by Woori Bank with 3.34 percent, state policy lender Korea Finance Corp with 2.58 and smaller stakeholders.

The chief of Korea Finance Corp said in late March that creditors are considering issuing new shares, a move that would bolster the chip maker's financial strength and ease the need for extra investment.

The injected $4.6 billion to rescue Hynix by swapping their debt holdings into shares in 2001 and 2002.

The company's first-quarter net profit slumped 66 percent year-on-year because of falling computer memory chip prices.

Explore further: Out-of-patience investors sell off Amazon

add to favorites email to friend print save as pdf

Related Stories

SKorea's Hyosung group bids for Hynix: report

Sep 22, 2009

A minor business conglomerate in South Korea looks set to buy a major stake in the world's second biggest memory chip maker after becoming the only firm to submit a bid, a report said Tuesday.

Chip maker Hynix to issue bonds worth $500 million

May 06, 2010

South Korea's Hynix Semiconductor, the world's second largest chip maker, said Thursday it would issue 500 million dollars of convertible bonds overseas, giving it a chance to expand as chip prices rise.

Hynix reports sixth straight quarterly loss

Apr 24, 2009

South Korea's Hynix Semiconductor, the world's second-largest computer memory chipmaker, Friday reported a sixth straight quarterly loss due to weak chip prices sparked by a global recession.

SKorea's Hynix swings to profit as chip industry recovers

Jan 21, 2010

South Korea's Hynix Semiconductor said Thursday it swung to a net profit in the fourth quarter, following a loss in the period the year earlier, in a further sign that the global chip industry is recovering from a two-year ...

Recommended for you

Out-of-patience investors sell off Amazon

17 hours ago

Amazon has long acted like an ideal customer on its own website: a freewheeling big spender with no worries about balancing a checkbook. Investors confident in founder and CEO Jeff Bezos' invest-and-expand ...

States ascend into the cloud

Oct 24, 2014

Seven years ago, the state of Delaware started moving computer servers out of closets and from under workers' desks to create a consolidated data center and a virtual computing climate.

Microsoft drops Nokia name from smartphones

Oct 24, 2014

Microsoft said Friday it was dropping the Nokia name from its Lumia smartphones, rebranding following the acquisition earlier this year of the Finnish group's handset division.

Amazon's loss makes holidays a question mark

Oct 24, 2014

Amazon's trademark smile icon is becoming more of a grimace. The world's largest online retailer reported a wider third-quarter loss than analysts expected and gave a disappointing holiday forecast.

User comments : 0