The deal, which will be the biggest acquisition ever by SK Telecom, will help the firm add a new revenue source. South Korea's top mobile carrier has struggled with slowing profit growth as luring customers in a maturing domestic telecoms market has raised costs. For Hynix, having SK Telecom, with its ample cash, as a top shareholder will help the loss-making chipmaker close the gap with bigger rivals Samsung Electronics Co and Toshiba Corp, analysts said. "Despite share dilution, this potential capital increase will significantly lower market concerns of financial/liquidity problems," Citi analyst Henry Kim said of Hynix. Kim estimated that Hynix's net debt would halve to around 2.4 trillion won after the share sale. Optimism on the deal finally going through after years of aborted sales attempts pushed Hynix shares up more than 5 percent on Friday. Shares in SK Telecom also gained 3.1 percent, versus the broader market's 1.5 percent rise. "The offered price is reasonable and a win-win for SK Telecom and creditors," said Koo Ja-woo, an analyst at Kyobo Securities. SK Telecom bid between 3.3 trillion-3.5 trillion won ($2.9 billion-$3.1 billion) for a controlling, or about 21 percent, stake in Hynix, topping the threshold set by shareholders, according to the source with direct knowledge of the deal. "(SK Telecom) is set to be named the preferred bidder," the source told Reuters. The person declined to be named as the decision is not made public yet. The source said SK Telecom had proposed a price of 22,000-24,000 won per share for 101.85 million new shares to be offered by Hynix, and 23,000-25,000 won per share for 44.25 million shares held by nine shareholders. The offer represents an up to 16 percent premium on Thursday's closing price. SK Telecom, the sole bidder in the auction that closed on Thursday, submitted the final proposal, defying doubts that it may withdraw following a prosecutor raid on parent SK Group over allegations that its founding family members may have used funds from SK affiliates to fund their personal investments. FINE TUNING Sale advisers and legal experts are reviewing the documents submitted by SK Telecom, according to a statement by Korea Exchange Bank (KEB). KEB leads the nine shareholders including state-run Korea Finance Corp, Shinhan Bank and Woori Bank. The top shareholders plan to sign an agreement with SK Telecom on Friday, an official at one of the shareholders said. Creditors-turned-shareholders of Hynix have sought to recoup billions of dollars they injected into the debt-ridden chipmaker several years ago following the Asian financial crisis. Attempts to give management control to a domestic company for fear of a potential leak of advanced technologies has cooled interest in Hynix at a time when investors are avoiding the capital intensive and cyclical memory chip sector. The latest auction comes after at least two aborted auctions and several deadline extensions. Hynix is expected to hold a board meeting to price the new share issue in mid-November after shareholders declare SK Telecom the preferred bidder, shareholder officials said. SK Telecom could cut the number of new shares it will buy should the chipmaker decide to sell them at a higher price than its offer. SK Telecom and the shareholders will discuss the final price of the existing stake after the pricing of the new shares is determined, shareholders have said.