SK Telecom buys $3 billion stake in memory maker Hynix

updated 05:20 pm EST, Mon November 14, 2011

Deal lets SK diversify into new businesses


SK Telecom is planning to purchase a 21 percent stake in Hynix Semiconductor. The deal will make the South Korean carrier the memory chip maker's largest shareholder. The transaction is valued at 3.4 trillion won, or about $3 billion.

SK will purchase a 6.4 percent share from nine banks. The financial institutions acquired 15 percent of Hynix's stock in a debt-for-equity swap after the company ran into financial trouble in the aftermath of the collapse of chip prices in 2001. The banks currently hold 15 percent of Hynix's stock. An additional 14.7 percent will come from the issuance of new Hynix shares.

The actual terms of the transaction may be adjusted after SK completes its due diligence in December. If all goes according to plan, the deal will close in the first quarter of 2012.

Hynix is the world's second-largest memory chip maker, in terms of revenue, after Samsung. SK Telecom in getting a stake would help guarantee supply and make sure Hynix stays afloat in a market where a lack of demand for traditional PCs might create an oversupply. [via Wall Street Journal (subscription)]


By Electronista Staff

Other Articles

toggle

Previous Comments

 
close
Photo
toggle

Network Headlines

toggle

Most Popular

10 Most Read

Recent Reviews

iHome iW2 AirPlay speaker

iHome generally isn't known as a luxury brand when it comes to audio, but it is prolific -- the company's docks and speakers are every ...

Logitech Ultrathin Keyboard Cover

One of the iPad's main weaknesses has always been productivity. It's not a question of apps; while it has taken a little time for a na ...

Logitech UE Air Speaker

If maybe a little more slowly than Apple would like, AirPlay is becoming a staple of the wireless speaker market for iOS devices. The ...

toggle

Most Commented

10 Most Discussed

 
toggle

Popular News