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: Amazon surprises with $214 mln quarterly profit

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

How can Google snap its stock out of its stupor?

5 hours ago

Google has turned into a stock market laggard as the shift to mobile devices has lowered the Internet search leader's digital ad prices and the company's expensive investments in far-out technology has trimmed ...

Amazon surprises with profit despite fierce spending

16 hours ago

Amazon surprised the market Thursday with a quarterly profit far better than anticipated for the online giant known for pouring money into projects such as original video programs and delivery drones.

Smartphone Snapshot: Samsung getting squeezed

17 hours ago

The runaway success of Apple's newest iPhone has fueled a dramatic shift in the global market: the California tech giant is now neck-and-neck with South Korea's Samsung for the title of world's leading seller ...

User comments : 0

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.