Korea's Hyosung (SEO:004800) Only Bidder for Hynix (SEO:000660)
Seoul, Sep 23, 2009 AEST (ABN Newswire) - Hyosung Group (SEO:004800) has made an offer to buy a 28 percent stake in Hynix Semiconductors (SEO:000660), the world's No. 2 memory chip maker after Samsung Electronics (SEO:005930).
"Out of the 40 companies to which we have sent an invitation for bids, one company has submitted a letter of intent," said Korea Exchange Bank (KEB), leading shareholder of Hynix. Hyosung Corp was the only company who has submitted a letter of intent for the stake in Hynix.
Hyosung, focused on textiles and machinery, is the medium-size conglomerate in Korea, with assets of 8.4 trillion won, while Hynix's total assets are 13.3 trillion won. It raised doubts over the bid made by Hyosung that it may not have enough financial resources to buy Hynix as the acquisition may require at least 4 trillion won.
Hyosung shares plunged by 15% after it submitted a bid to buy a major stake in chip maker Hynix as analysts concerned about the cost of the acquisition, and the relative lack of meaningful business synergies in the deal.
KEB said it would proceed with the sale process to name a preferred bidder by end-November.
Contact
Michelle Liang
Asia Business News Asia Bureau
Tel: +61-2-9247-4344
Email: michelle.liang@abnnewswire.net
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