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Magnachip aims to sign sale deal to KTB by end-May

Wed May 13, 2009 11:16pm EDT

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SEOUL, May 14 (Reuters) - MagnaChip Semiconductor said on Thursday it aimed to sign a deal to sell the South Korean chip maker to KTB Securities (030210.KS) by the end of May.

South Korea

Magnachip, which makes image sensors for mobile phones and display driver chips for flat-screens, was put up for sale as it struggles under heavy debt and the industry's severe downturn.

A South Korean news service eDaily reported private equity funds run by KTB plan to buy assets of MagnaChip.

"Negotiation with KTB is ongoing. A final deal could be signed by the end of this month," said Park Chan-keun, a Magnachip spokesman.

A KTB Securities spokeswoman, Eun Kyong, said the company has not made a final decision on the possible deal, adding terms and conditions on the deal have not been finalised.

MagnaChip in January withdrew its plan for initial public offering of up to $575 million on the New York Stock Exchange, which had been delayed for years.

Shares in KTB Securities fell 3.1 percent by 0311 GMT, compared with the wider market's 1.9 percent loss. (Reporting by Rhee So-eui and Kim Yeon-hee; Editing by Ken Wills)

South Korea


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