Creditors rule out changes in sale method

Creditors of Hynix Semiconductor Inc. said Thursday they are not considering changing sale conditions for the chipmaker, dismissing speculation that the sale may hit a snag due to potential bid withdrawals. Early last month, top mobile carrier SK Telecom and shipbuilding conglomerate STX Group submitted preliminary bids for a 15 percent stake in the world's second-largest computer memory chipmaker. Local media reported that a prospective buyer may pull out of bidding on rumors that creditors are trying to give incentives to a hopeful buyer that will bid for large portions of the available stake without the issuance of new shares. Ryu Jae-han, chief executive of policy lender Korea Finance Corp. (KoFC) shrugged off such speculation, adding that creditors will stick to their original sale conditions. "Creditors do not consider giving extra points to a hopeful buyer who tries to buy as much of the existing shares," Ryu said in a press conference. The creditors are considering issuing new shares, a move to help the chipmaker bolster its financial strength and ease the burden of additional capital investment for the new owner. A prospective buyer would be allowed to sell up to 10 percent out of its stake, but it will be permitted to issue new shares only when it offers to bid for at least half of the 15 percent. Korea Exchange Bank is the biggest shareholder in Hynix with a 3.42 percent stake, followed by Woori Bank with 3.34 percent and KoFC with 2.58 percent. The creditors' previous attempts 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. The creditors injected $4.6 billion to rescue the chipmaker by swapping their debt holdings into shares in 2001 and 2002.