The stake of Hynix will be held by Korean chaebol and Arab wealth fund

Published:2011/8/26 1:48:00 Author:Li xiao na From:SeekIC

It is reported by the Wall street Journal, the Korea Chaebol may bid for 15% stake of the HYnix with Arab sovereign wealth fund. With this 15% stake, they are able to gain the management control of the memory company. The Chaebol, STX, is a large company that devotes to build ships. The European ship building interests, which was managed by Kvaerner, Alstom and Aker before, is owned by this Korean company. vaerner, Alstom and Aker owns the shipbuilding yards in Brazil Finland, Norway, France, Rumania and Vietnam.

To change the traditional profit pattern is the purpose of Chaebol. 40% of revenues will be form chips and 60% from shipbuilding if the plan is success. The whole plan will cost the Chaebol 2.5 billion US dollars. The Arab sovereign wealth fund is Aabar of Abu Dhabi.

SK Telecom is another bidder of 15% stake, which is also located in Korea. "SK Telecom hopes to become a global company through the semiconductor business, which is expected to continue its growth onwards with the proliferation of smart phones and tablet computers and smart TVs." SK and STX started performing due diligence on Hynix in late July with the intention of finishing in September to meet a deadline for final provides in September. According to local press reports, this may be extended to October. At Hynix’s current share price 15% is valued at $1.5bn.

The 15% stake was acquired by a group of Korean banks in 2001 when Hynix looked on the brink of collapse. The banks have been trying to unload the stake ever since. Hynix’s nine creditor banks have already made several attempts to sell Hynix without success.

It was said that Micron would by the company in 2002. Last year, the owner of Globalfoundries, ATIC of Abu Dhabi, was said to have taken an interest in acquiring Hynix but that had no result. Between these two events the creditor banks have made three attempts to hold an auction of Hynix without success. Only the Korean conglomerate Hyosung is attracted by the auction in 2009.

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