Creditors invite bids for Hynix Semiconductor

Creditors of Hynix Semiconductor Inc. invited prospective buyers Tuesday to bid for a major stake in the world's second-largest computer memory chip maker 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 chip-making sector and huge investment have made potential investors wary of buying the company. KEB is the biggest shareholder of 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 KoFC said creditors are considering issuing new shares, a move to help the chip maker bolster its finance strength and ease the burdens over additional capital investment for a new owner. The creditors injected US$4.6 billion to rescue the chip maker 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.