March 27, 2002 – Seoul, Korea – Hynix Semiconductor Inc. creditors have reviewed a new takeover offer by Micron Technology Inc., as the authorities insisted a deal was close.
Senior officials from Hynix’s two key creditors, Korea Exchange Bank (KEB) and Hanvit Bank, met to discuss Micron’s latest terms, a KEB official said. “The meeting was to review terms sent last weekend by legal and financial advisors,” he said.
Recent reports have said creditors were in dispute over how to share the burden of $1.5 billion in fresh loans needed by Hynix, reported the Financial Times.
Some minor creditors have refused to give new loans although the government was pushing the banks to quickly close the drawn-out deal.
Finance and Economy Minister Jin Nyum said the deal was in its final stages with differences narrowed on many issues. “Hynix’s talks are in their final stages. It won’t last long,” Jin said.
He refused to give a date but said negotiations were “progressing smoothly.”
Micron has agreed in principle to pay at least $3.8 billion for Hynix’s memory chip operations. The US firm has also agreed to acquire a 15% stake in Hynix’s non-memory operation by investing $200 million in cash.