Reuters has reported that SK Telecom has been named preferred bidder for control of Hynix Semiconductor. The $3 billion deal will be the biggest acquisition ever by SK Telecom.
Analysts have stated that potential capital increase resulting from the sale will lower market concerns about Hynix’s financial problems. It is estimated that Hynix’s net debt will be reduced to around 2.4 trillion won ($2.1 billion) after the sale.
Market optimism pushed Hynix’s share price up more than 5 percent in trading on Friday. Shares in SK Telecom closed up 3.1 percent versus the broader market’s .KS11 2.8 percent rise. Hynix finished up 0.2 percent.
According to a source with knowledge of the sale, SK Telecom bid between 3.3 trillion-3.5 trillion won for a roughly 21 percent stake in Hynix. The source stated that SK had proposed a price of 22,000-24,000 won per share for 101.85 million newly issued shares, and 23,000-25,000 won per share for 44.25 million shares held by nine shareholders, a premium of roughly 16 percent on Thursday’s closing price.
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