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Hynix to reportedly spin off car electronics company

Posted: 15 Aug 2005 ?? ?Print Version ?Bookmark and Share

Keywords:car electronics? hyundai autonet? lcd? memory?

Continuing to streamline its business, Korean chipmaker Hynix Semiconductor Inc. has sold 2.34 percent of its total 15.21 percent stake in Korean car electronics equipment maker Hyundai Autonet, according to a report in the Korean publication Korea Herald.

The report, quoting sources close to the company, added that another 8.26 percent held by the Korea Deposit Insurance Corp. is to be acquired by the consortium of Hyundai Motor Co. and Siemens AG of Germany.

Sale of the remaining 4.61 percent stake on the local bourse is imminent, sources were quoted as saying in the report.

Hynix is expected to gain about 100 billion won $98.6 million by unloading Hyundai Autonet, with the Hyundai-Siemens consortium to fork over 45.3 billion won ($44.6 million), the report said.

In its aims to shed off non-core businesses, Hynix had also attempted earlier to sell its non-memory chip operations, such as its LCD (liquid crystal display) operation.

Hynix regained control of its operations last month after nearly four years of being under creditor management, opening the way for the once-troubled chipmaker to focus on developing its core competitiveness.

The company graduated from its debt-workout program about 18 months ahead of schedule as it raised $1.25 billion during May and June to pay off debt.

Meanwhile, creditors, who swapped about 4.8 trillion won of debt for an 81.4 percent stake since 2001 to bail out the chipmaker, will continue to have the right to participate at board and shareholder meetings to decide important management issues.

The Korea Exchange Bank, Hynix's main creditor bank, said creditors plan to sell a combined 24 percent stake within the second half of this year to domestic and foreign investors. The terms and a specific timetable still need to be fixed, according to the report.

- Spencer Chin

EE Times

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