Hynix sale continues despite STX back off

Those involved in the auction of Hynix Semiconductor are rushing around trying to find more interested bidders after STX backed out last week.

According to Reuters, if new bidders cannot be found for the world’s second biggest memory chipmaker,  mobile carrier SK Telecom will be the only one left.

Shareholders have been trying to flog the outfit off and have not been having much in the way of luck. Shareholders have scaled down their stake in Hynix but failed several times to complete a full sale. Investors are not keen to jump into the capital intensive, cyclical memory chip sector, particularly as the world mutters about recession.

Now the lead shareholder Korea Exchange Bank said it would allow new bidders to participate in the stake sale in the interests of valid competition.

Up for grabs is 146.1 million shares which should be worth about $2.5 billion. The sale was supposed to happen in late October, but with SK Telecom ruling itself out, it might be delayed. If new buyers can be found, then they will have to inspect the company books, which will take a bit of time.

SK Telecom had a seven-week inspection and then fled to the hills.