Private Equity Korea » Hynix

SK Telecom acquires fewer shares than expected in Hynix

Stephanie Lim — Fri, 18 Nov 2011 01:52:03 +0000

Local news media Yonhap News Agency has reported that SK Telecom, South Korea’s largest mobile operator, has acquired a 7.47 percent stake in Hynix Semiconductor for 1.08 trillion won ($949.32 million).

In the after-hours trading session on November 17, SKT bought 44.25 million existing shares of Hynix at 24,500 won each. This was considerably less than what SKT agreed to purchase earlier that week.

On November 14, SKT agreed to buy a 21.05 percent stake for 3.43 trillion won ($3.06 billion), including half of a 15 percent stake and 101.85 million new shares.

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SK Telecom agrees to buy Hynix for $3 billion

Stephanie Lim — Mon, 14 Nov 2011 02:32:01 +0000

Reuters has reported that South Korea’s SK Telecom has agreed to buy 21 percent of Hynix Semiconductor for 3.4 trillion won ($3.0 billion). According to the terms of the deal, SKT will pay 2.3 trillion won to Hynix and the remaining 1.1 trillion won to its nine shareholders.

SKT had offered to buy new shares at 23,000 won each, or a 7 percent premium to the November 10 closing price, and to purchase existing shares from nine shareholders for 24,500 won each, at a 14 percent premium.

SKT is aiming to close the deal by the first quarter of 2012.

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SK Telecom named preferred bidder in Hynix sale

Brett Moffat — Fri, 11 Nov 2011 09:43:49 +0000

Reuters has reported that SK Telecom has been named preferred bidder for control of Hynix Semiconductor. The $3 billion deal will be the biggest acquisition ever by SK Telecom.

Analysts have stated that potential capital increase resulting from the sale will lower market concerns about Hynix’s financial problems. It is estimated that Hynix’s net debt will be reduced to around 2.4 trillion won ($2.1 billion) after the sale.

Market optimism pushed Hynix’s share price up more than 5 percent in trading on Friday. Shares in SK Telecom closed up 3.1 percent versus the broader market’s .KS11 2.8 percent rise. Hynix finished up 0.2 percent.

According to a source with knowledge of the sale, SK Telecom bid between 3.3 trillion-3.5 trillion won for a roughly 21 percent stake in Hynix. The source stated that SK had proposed a price of 22,000-24,000 won per share for 101.85 million newly issued shares, and 23,000-25,000 won per share for 44.25 million shares held by nine shareholders, a premium of roughly 16 percent on Thursday’s closing price.

SK Telecom joins bidding for Hynix Yonhap News has reported that SK Telecom Co. has submitted...
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SK Telecom makes lone bid for Hynix According to Bloomberg, SK Telecom, Korea’s biggest mobile-phone company, has...

SK Telecom makes lone bid for Hynix

Stephanie Lim — Fri, 11 Nov 2011 06:19:44 +0000

According to Bloomberg, SK Telecom, Korea’s biggest mobile-phone company, has offered to buy 20 percent of Hynix Semiconductor. SKT submitted its bid on November 10 before the 5 p.m. deadline, and Hynix shareholders received no other offers.

The Wall Street Journal has reported that the stake consist of 146.1 million shares and is worth about $2.8 billion.

The sale has now moved forward into negotiations between SKT and the nine creditors-turned shareholders, but the situation appears to be unstable amid allegations of embezzlement by SK Group’s chairman Chey Tae Won.

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Hynix shareholders extend bid deadline to Nov. 10

Stephanie Lim — Wed, 26 Oct 2011 06:16:21 +0000

Reuters had reported that the shareholders of Hynix Semiconductor have again extended the deadline for bids for the 3.2 trillion won ($2.8 billion) stake sale. The creditors-turned-shareholders have pushed the deadline to November 10 in hopes to attract another bidder to compete with SK Telecom.

Lead shareholder Korea Exchange Bank said in a statement that it still aims to close the deal by January 2012.

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Hynix Creditors extend bid deadline

Stephanie Lim — Mon, 10 Oct 2011 08:28:07 +0000

Since STX pulled out of the bidding for Hynix Semiconductor in mid-September, creditors-turned-shareholders of Hynix decided to allow new bidders to join the sale, but planned to continue with the stake sale as scheduled.

However, Hynix shareholders have now extended the bid deadline by two weeks to November 3, and plan to close the deal by January 2012. They have also sent bid manuals to 13 companies, including SK Telecom for the 3.2 trillion won ($2.8 billion) stake sale, and will give any new potential bidders up to one month for due diligence.

Source: translated from The Bell

Hynix creditors add requirement to sale structure According to Maeil Business News, the creditors of Hynix Semiconductor...
Hynix shareholders continuing sale, allowing new bidders According to Reuters, despite the fact that there is only...
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Hynix shareholders continuing sale, allowing new bidders

Stephanie Lim — Wed, 21 Sep 2011 05:34:32 +0000

According to Reuters, despite the fact that there is only one remaining bidder, the shareholders of Hynix Semiconductor said on September 20 that they will be proceeding with the schedule for the 3.2 trillion won ($2.8 billion) stake sale as planned.

On September 21, the shareholders announced that they will be allowing new bidders to join the sale. Reuters reported that lead shareholder Korea Exchange Bank (KEB) said in a statement that “the shareholder committee plans to expand opportunities for additional hopefuls.” Marketwatch quoted KEB attributing this decision to the shareholders’ desire to make the sale process “more transparent and fair.”

Whether or not the sale receives more bids, the shareholders intend to close the bidding on October 24 and select a preferred bidder by the end of the month. New bidders will not be given extra time to perform due diligence.

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MKE establishes 90 billion won Semiconductor Fund

Stephanie Lim — Mon, 19 Sep 2011 06:20:16 +0000

Korea’s Ministry of Knowledge Economy (MKE), in cooperation with Samsung Electronics and Hynix Semiconductor, has created a 90 billion won Semiconductor Fund.

The MKE has received proposals from 9 private equity and venture capitals firms, and the Korea Semiconductor Industry Association expects to select 4-5 GPs to manage the fund by the end of September. The MKE, Samsung, and Hynix are to endow 5 to 25 billion won to the parties selected.

This is the MKE’s second fund aimed at the domestic semiconductor industry, following the 60 billion won fund that was created in late 2010. The first Semiconductor Fund granted 10 billion won to JNT Investments, 10 billion won to SV Investment, 20 billion won to IB investment, and renewed investment in venture capital firm IBK Securities with 20 billion won.

Source: translated from The Bell

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STX pulls out of Hynix sale

Stephanie Lim — Mon, 19 Sep 2011 04:41:37 +0000

After seven weeks of due diligence, STX Group announced on September 19 that it has decided to withdraw its bid to buy a 15 percent stake in Hynix Semiconductor, citing global uncertainties and the burden of future investments needed to raise competitiveness. This leaves SK Telecom as the sole bidder for the world’s No. 2 memory chipmaker, as the need for continued investments would make the acquisition an encumbrance to STX, despite its consortium with Abu Dhabi’s Aabar Investments.

Earlier this month, Hynix shareholders, led by Korea Exchange Bank, decided to increase the sale to a 20 percent stake that includes 101.85 million new shares and 44.25 million existing shares. According to Bloomberg, the 146.1 million shares for sale are valued at 3.1 trillion won ($2.7 billion) based on Hynix’s latest closing price.

The shareholders had planned to receive bids by October 24 and select a preferred bidder by the end of October; however, industry analysts have said that the reduced competition could cause the sale to fall through. SKT would like the sale to continue, but a private sale to SKT could raise concerns that chaebol are over-expanding, a practice that led to the late 90s financial crisis.

Hynix’s main shareholders, who have failed to sell their stake three times since 2009, said they will discuss how to proceed.

Fall in share prices cast shadow over M&As

Stephanie Lim — Fri, 26 Aug 2011 01:59:06 +0000

Local news media Yonhap News has reported on the impact this bear market has had on the nation’s large takeover deals. According to the report, the main Korea Composite Stock Price Index (KOSPI) has tumbled as much as 18 percent this month as a result of the recent U.S. debt downgrade and the European fiscal crisis. The financial downturn has caused various conglomerates that are involved in takeovers to alter their strategies and adjust deal terms as sales prices will inevitably be affected.

According to Yonhap, food and entertainment conglomerate CJ Group is negotiating a discount of more than 3 percent on the purchase price of Korea Express, despite the existence of a clause in the purchase agreement which limits price changes to a maximum of 3 percent. Korea Express closed at 85,500 won ($79) on August 24, down 34 percent from 130,500 won on June 27 when CJ bid for the company. On June 28, CJ was selected as a preferred bidder after offering to pay 1.85 trillion won, or 215,000 won per share.

There is also growing concern that the sale of Hynix Semiconductor could be delayed since its shares fell 37 percent to 16,250 won on August 24 from its closing price on July 8. Top mobile carrier SK Telecom submitted a letter of intent on July 8 to buy a 15 percent stake in Hynix, which could amount to at least 2.4 trillion won. If the sale continues according to the existing terms, SK Telecom will benefit, but profits to creditors will be eroded. Thus, media reports have forecasted that the creditors of Hynix will stretch the schedule in hopes to see a recovery in share prices.

Market watchers also attribute the recent suspension of the Woori Finance Holdings sale to the fall in share prices, which would hamper the government’s goal to maximize the return on public funds.

Analysts optimistic as creditors announce 3rd Hynix sale Reuters has reported that the creditors of Hynix Semiconductor, including...
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