Hynix shareholders to accept takeover bids in mid-September

SEOUL Mon Jul 25, 2011 7:21am EDT

An employee of Hynix walks at the company's main office building in Seoul July 8, 2011. REUTERS/Truth Leem

An employee of Hynix walks at the company's main office building in Seoul July 8, 2011.

Credit: Reuters/Truth Leem

SEOUL (Reuters) - Hynix Semiconductor Inc (000660.KS) shareholders will take final bids for a controlling stake in the world's No.2 computer memory chipmaker in mid-September, a leading shareholder said on Monday.

Korea Exchange Bank (KEB) 004940.KS said in a statement that STX Corp (011810.KS) and SK Telecom (017670.KS), which both submitted their initial interest in a combined 15 percent stake, began six weeks of due diligence from Monday.

It pledged the sale process would be "fair and transparent."

The $2.3 billion stake sale is the third attempt by creditors-turned-shareholders to find a new owner for the chipmaker.

Creditors saved Hynix from a debt crisis in 2001, but previous auctions drew little interest from investors reluctant to jump into the cyclical chip industry.

Shareholders this time are trying new methods including offering new shares in conjunction with their existing stake so proceeds can better flow into the chipmaker.

STX has said it plans to sell assets and team up with a Middle-East based sovereign wealth fund to fund the takeover, noting it would make a final decision after due diligence.

Shares in Hynix ended up 0.6 percent, outperforming the overall market's .KS11 0.96 percent fall.

(Reporting by Ju-min Park; Editing by Jonathan Hopfner)

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.