The Korea Deposit Insurance Corp. said yesterday that it had sold a 0.7 percent stake in Hynix, the world’s No. 2 chipmaker, for $103 million in a move that suggested that a further planned sale of a 5 percent stake by creditors later this year is likely to meet with success, The JoongAng Daily reported Saturday June 19.
KDIC sold the shares at 28,200 won ($23.50) apiece, which was Hynix’s closing price on Thursday, leaving KDIC with a 2 percent stake in Hynix.
Creditors sold a 6.7 percent stake in Hynix in March for 923.2 billion won after previous attempts to find buyers had failed.
Once the planned sale of the 5 percent stake is sold by the end of the year, creditors are hoping that the remaining 15 percent they hold can be sold to a domestic buyer.
To prevent a possible hostile takeover bid, Hynix recently said it was prepared to repay a large amount of debt to fend off an unwelcome approach.
There is still uncertainty over the future ownership of Hynix since analysts believe that another domestic buyer is unlikely to acquire the company.
Instead, the creditors may have to find financial investors to take over their stake.
One problem that could deter investors is that although memory chip demand is rising, any new investors would have to make sizable investments to keep Hynix competitive.
See here for all stories on the Hynix sale.
Source: JoongAng Daily
More From privateequitykorea
No related posts.
