Creditors invite bids for Hynix Semiconductor

(ATTN: UPDATES with more details in paras 7-9)
SEOUL, June 21 (Yonhap) -- Creditors of Hynix Semiconductor Inc. invited prospective buyers Tuesday to bid for a major stake in the world's second-largest computer memory chipmaker with the aim of selecting a preferred bidder in August.
Creditors-turned-shareholders of Hynix Semiconductor, led by Korea Exchange Bank (KEB), said in a statement that they announced a bid invitation for a combined 15 percent stake in the chipmaker, adding that they hope capable large firms will offer bids.
The creditors said they will accept preliminary bids by July 8 and are seeking to wrap up the sale by the end of this year.
The creditors' previous attempt to sell Hynix Semiconductor hit a snag as volatile business conditions for the chipmaking sector and huge investments have made potential investors wary of buying the company.
KEB is the biggest shareholder in Hynix with a 3.42 percent stake, followed by Woori Bank with 3.34 percent and state policy lender Korea Finance Corp. (KoFC) with 2.58 percent.
In late March, the chief of the KoFC said creditors are considering issuing new shares, a move to help the chipmaker bolster its finance strength and ease the burdens over additional capital investment for a new owner.
The KoFC's CEO Ryu Jae-han said Tuesday that the creditors would allow a prospective buyer of the chipmaker to sell up to 10 percent out of its stake.
But he added that a hopeful bidder is allowed to issue new shares only when it offers a bid for at least half of a 15 percent stake in Hynix Semiconductor.
Ryu also added that if there is only a solo bidder for the stake, the creditors may extend the deadline by around two weeks. Even then, if no competitor emerges, the creditors will seek to sign a deal with the bidder, he noted.
The creditors injected US$4.6 billion to rescue the chipmaker by swapping their debt holdings into shares in 2001 and 2002.
In the first quarter, the company's earnings tumbled 66.2 percent on-year as weak PC demand battered chip prices.
sooyeon@yna.co.kr