Online information source for semiconductor professionals
STX and Aabar to bid for Hynix stake
Popular articles
Oberai discusses Magma’s move into solar PV yield management space - 29 August 2008
â??Velocityâ?? the new buzzword in Intelâ??s PQS annual awards - 12 April 2012
Applied Materials adds Jim Rogers to Board of Directors - 29 April 2008
TSMC honors suppliers at annual Supply Chain Management Forum - 03 December 2008
Sematech Litho Forum: Sematech mulling multi-beam mask writer effort - 12 May 2010
South Korean conglomerate STX Group and Abu Dhabi state-owned fund Aabar Investments are to put in a joint bid for a 15% stake in Hynix Semiconductor, an anonymous source yesterday told Reuters.
According to the Wall Street Journal, the shipbuilding-to-shipping conglomerate plans to expand its business portfolio with the acquisition of part of the chip-manufacturer, resulting in 40% of its total revenue coming from semiconductors.
However, STX has no plans to allow their Middle-Eastern partner to hold a role in the management of Hynix. A major shareholder told Reuters earlier this month that STX would only consider foreign investors with no interest in managing the company, a sentiment echoed by yesterday’s source.
"If we do form a consortium with the sovereign wealth fund for a Hynix bid, we will have the management rights over the chip maker," the source said. "Aabar will just be a financial investor."
The 15% stake in Hynix, which was acquired by creditors in 2001, is currently valued at approximately $1.4 billion. If the acquisition by STX and Aabar goes ahead, each is expected to fund half of the cost. South Korean mobile company SK Telecom has also bid for the stake.
Local media reported that the deadline for final bids may be delayed to from mid-September to October; however Hynix’s creditors said today that they had received no request from bidders to change this deadline.