South Korean mobile operator SK Telecom has said that it is still reviewing whether to go ahead with its bid for a stake in chipmaker Hynix Semiconductor after the news that rival bidder STX Corp had withdrawn from the race.
An SK Telecom spokeswoman…
South Korean mobile operator SK Telecom has said that it is still reviewing whether to go ahead with its bid for a stake in chipmaker Hynix Semiconductor after the news that rival bidder STX Corp had withdrawn from the race.
An SK Telecom spokeswoman told TelecomFinance that the company would first consider its due diligence investigation into Hynix, the outlook of the semiconductor industry and sales conditions, before making a final decision regarding its bid.
She also said that the company hoped the Hynix sale procedure would go ahead as scheduled.
Reuters reported Hynix’s shareholders had planned to receive final bids by 24 October, but this could not be confirmed.
SK Telecom’s comments followed the news earlier today that STX Corp had withdrawn its bid.
A STX Corp spokeswoman said that it had dropped the bid “due to financial burdens over the investments needed to keep the chipmaker [Hynix] competitive and global economic uncertainties”.
She said that a “subordinate” reason for the STX decision was related to funding. STX had met delays in reaching agreement with its financial investor, the Abu Dhabi sovereign wealth fund Aabar, over investment terms.
SK Telecom reportedly announced in July that it would be making a bid for a 15% stake in Hynix. Local newspaper the Korea Herald has estimated that the stake is worth KRW1,500bn (US$1.32bn).
