Creditors say Hynix sale process going smoothly

SEOUL, Aug. 9 (Yonhap) -- Creditors of Hynix Semiconductor Co. said Tuesday the process for selling the world's No. 2 memory chipmaker is going along without a hitch, dismissing reports that a prospective buyer is considering pulling out of the bidding due to a changed sale method.
South Korea's leading mobile carrier SK Telecom and shipbuilding conglomerate STX Group submitted letters of intent on July 8 to buy a 15 percent stake in Hynix, which could fetch at least 2.4 trillion won (US$2.2 billion).
"SK Telecom and STX Group kicked off their preliminary due diligence on Hynix late last month, which has been progressing smoothly," said main creditor Korea Exchange Bank (KEB), which is handling the stake sale.
Local media reported Tuesday that SK Telecom was planning not to bid for the stake because creditors changed an earlier promise to allow a buyer to purchase their stake as well as new shares.
The creditors had reportedly promised to permit a potential buyer to purchase new Hynix shares equivalent to up to 10 percent if it takes over 7.5 percent of the creditor stake.
SK Telecom opposes the changed sale method because the purchase of the existing shares will only give creditors a huge profit, while the proceeds from a new share sale will go to Hynix's coffers that could be used for future investments, the reports said.
Also, STX Group is reportedly upset with the creditors' U-turn.
KEB said it is discussing the matter of issuing new shares with Hynix, which requires approval from the company's board of directors.
"The sale method includes not only the disposal of existing shares, but also the issuance of new shares," said the lender controlled by U.S. private equity fund Lone Star Funds. "We are in deep discussions with Hynix on that issue."
The six-week due diligence on Hynix will end early September. The bidding will likely start in the same month and the creditors plan to complete the sale by the end of this year.
The creditors' two previous attempts to sell Hynix Semiconductor were aborted as volatile business conditions for the chipmaking sector and huge investments made potential investors wary of the purchase.
The creditors pumped $4.6 billion into Hynix through debt-equity swaps in 2001 and 2002 to keep the company above water.
elly@yna.co.kr