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Hynix sells $1.5B-worth stocks

Posted: 28 Jun 2006 ?? ?Print Version ?Bookmark and Share

Keywords:stock? Hynix? GDR? global depository receipt? Sean Shim?

Hynix Semiconductor Inc. said it and its creditors have completed a sale of shares worth about $1.5 billion, a portion of which will help it raise funds for facilities investment.

Hynix said in a regulatory filing it has sold 10.81 million new shares worth $300 million. It issued global depository receipts (GDR) each worth $27.75.

The fund raised through the stock sale will be used to expand production lines, according to Hynix.

In a separate filing, Hynix said its creditors, led by the Korea Exchange Bank, sold a total of 43.1 million existing shares worth $1.2 billion, or 9.6 percent of the company, to domestic and overseas investors at the same price.

The price involved in both deals was set at a lower-than-expected 2.2 percent discount from its June 23 closing share price, Hynix added. Market analysts had predicted the discount rate to range between 5 to 9 percent.

Hynix said 16.14 million of the 43.1 million existing shares sold by the creditors went to foreign investors in GDRs, while the remaining 26.96 million shares were purchased by domestic investors in a block trade.

The sale is expected to help make Hynix partly independent from creditors, fund investments and government support. Creditors reportedly injected a total of $4.6 billion in 2001 and 2002 to keep the then debt-ridden company afloat by swapping its debts for equity shares.

- Sean Shim
EE Times

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