SEOUL: Final bids to sell a $2.7 billion stake in South Korean chipmaker Hynix Semiconductor will close on Oct. 24, its key shareholder said on Friday, as creditors seek to recoup billions of dollars they injected during one of the industry's worst downturns.
Shipping-to-shipbuilding group STX Corp and SK Telecom are vying for the control of the world's No.2 memory computer chipamker as they seek to expand into a sector set to enjoy strong growth from booming sales of tablets and smartphones.
Korea Exchange Bank (KEB) said in a statement on Friday that a group of shareholders would send a invitation letter to the bidders around Sept. 21 and that they aimed to pick a preferred bidder in late October before signing a sales deal n November.
The successful buyer will own 20 percent of Hynix shares, worth 2.9 trillion won ($2.7 billion) at current market value. Out of the total stake up for sale, 14 percent will come in the form of new shares issued by Hynix, and 6 percent will be offered by creditors-turned-shareholders.
Hynix plans to offer 101.85 million in new shares, securing 2 trillion won in fresh funding, and shareholders will sell 44 million shares, or roughly half of their total stake in the firm.
That will give Hynix fresh funds to improve its financial balance and use for capital investment, KEB said in a statement.
The latest auction comes after a series of failures to seal due to a lack of bid interest in the firm, which was rescued from a debt crisis in 2001.
Hynix shares closed up 3.1 percent on Friday, outperforming a 1.8 percent drop in the broader market.
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