SK Telecom named as preferred bidder for Hynix
Nov. 11, 2011 - 21:00
By Korea Herald
Hynix Semiconductor Inc. shareholders on Friday named SK Telecom Co. as the preferred bidder, a day after the mobile carrier submitted a final bid for a controlling stake in the chipmaker.
The stake in Hynix on the block is estimated at around 3 trillion won ($2.64 billion).
Hynix shareholders had extended the bidding deadline twice to attract more bidders with STX Group pulling out of the race that resulted in a solo bid by SK Telecom.
The stake sale contract will be signed on Nov. 14 after Hynix board decides on the price of new shares. The sale is expected to be wrapped up by January next year.
SK Telecom’s bid for Hynix spawned much speculation and skepticism in the market over how the carrier’s mobile business could benefit from taking over a chipmaker.
Shares in Hynix closed up 0.23 percent to 21,550 won while SK Telecom shares jumped 3.1 percent on Friday.