Two S. Korea firms bid for Hynix stake

Jul 08, 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.

Two South Korean companies said Friday they had submitted preliminary bids to buy a controlling stake in Hynix Semiconductor, the world's second-largest memory chip maker.

Top mobile carrier SK Telecom and shipbuilder STX Group sent letters of intent to creditors-turned-shareholders to buy a 15 percent stake before the deadline Friday afternoon.

The creditors want to select a preferred bidder in August and complete the sale of their combined stake worth 2.4 trillion won ($2.3 billion) by the end of the year.

SK Telecom said convergence of the chipmaking and telecommunications businesses would enhance efficiency and help expand its overseas interests.

"The will help us become a global company," it said, adding demand for was likely to continue growing due to the spread of smartphones, tablet PCs and smart TVs.

SK Telecom controls about half of South Korea's saturated .

STX said it aims to diversify from shipbuilding and shipping, adding that it is considering setting up a consortium with an unidentified sovereign wealth fund in the Middle East to buy Hynix.

Ship making giant Hyundai Heavy Industries, once viewed as the sole likely candidate to buy Hynix, said Thursday it was not interested -- raising fears a sale would fall through again.

The creditors rescued Hynix by swapping their debt holdings into shares in 2001 and 2002.

They have been trying for years to sell out but previous attempts have been dogged by uncertainties over the chipmaking sector and the need for huge investment in Hynix.

Korea Exchange Bank 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 and ease the need for extra investment.

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

Explore further: Android grabs 85% of smartphone market: survey

add to favorites email to friend print save as pdf

Related Stories

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.

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.

Recommended for you

Android grabs 85% of smartphone market: survey

2 hours ago

Smartphones powered by the Android operating system captured 85 percent of the worldwide market in the second quarter, threatening to marginalize rival platforms, a new survey shows.

Chinese man brings gay conversion therapy lawsuit

7 hours ago

(AP)—A gay Chinese man said Thursday he was suing a psychological clinic for carrying out electric shocks intended to turn him straight, as well as the search engine giant Baidu for advertising the center.

Alcatel loss narrows in 2Q but revenue stagnates

8 hours ago

(AP)—Telecommunications equipment company Alcatel-Lucent SA says its net loss narrowed in the second quarter thanks to lower accounting charges, while revenue stagnated and restructuring charges mounted.

User comments : 0