Bloomberg News

Hynix Creditors Plan to Receive Final Bids by September

June 10, 2011

(Adds Ryu’s comments in the second paragraph.)

June 10 (Bloomberg) -- Creditors of Hynix Semiconductor Inc. aim to receive final bids for the controlling stake in the chipmaker by September as they seek to initiate their fourth attempt to unload their shares.

The shareholders are considering asking the company to sell new stock, in addition to part of their combined 15 percent stake in the world’s second-largest maker of computer memory chips, Ryu Jae Han, Chief Executive Officer of Korea Finance Corp., said in a phone interview. They aim to close the deal, including payment, by the end of this year, Ryu said.

A group of creditors, including Korea Finance, plans to sell all or part of a 15 percent stake in Hynix that it gained through a government-initiated bailout of the chipmaker in 2001 following an industry downturn. The nine financial institutions may announce the sale schedule by the end of this month, Kim Sun Gyu, a spokesman for Korea Exchange Bank, the lead creditor, said on June 8.

While the creditors plan to invite preliminary bids in July, they will reissue a tender or extend the period if they fail to receive bids from more than one company, Ryu said.

Hynix fell 7 percent to 26,700 won at the 3:00 p.m. close of trading in Seoul on speculation that the company would issue new shares, while the benchmark Kospi index fell 1.2 percent.

The company isn’t considering a new share sale, Hynix said in a filing after the bourse asked it to provide a clarification on the speculation.

Hyundai Heavy Industries Co., the world’s largest shipyard, said on June 8 that it may consider bidding for Hynix, without elaborating.

--Editors: Suresh Seshadri,

To contact the reporters on this story: Seonjin Cha in Seoul at; Jun Yang in Seoul at

To contact the editor responsible for this story: Chitra Somayaji at;

Steve Ballmer, Power Forward
blog comments powered by Disqus