State-owned fund teams up with South Korea's STX to bid for Hynix Semiconductor, says source
Abu Dhabi state-owned fund Aabar
has teamed up with South Korea's STX Corp to bid for
the world's No.2 memory chipmaker Hynix Semiconductor, a source close to the matter said on Wednesday.
"Aabar is fine-tuning investment details with STX and three
or four small funds will come along with Aabar," the source told
Reuters, declining to be named due to the sensitivity of the
Shipbuilding to shipping group STX declined to comment.
Aabar was not immediately available to comment.
The collaboration of STX and Aabar, the largest single stake
owner in both German automaker Daimler and global
commodities trader Glencore , comes as the planned sale
of Hynix is in doubt with shareholders yet to reach an agreement
on bid structure.
Controversy over the possible sale of new shares in Hynix in
conjunction with major shareholders' existing stake, worth up to
$2.3 billion, and fears of the impact of a fresh recession on
Hynix's highly cyclical business have clouded prospects for the
STX and rival bidder SK Telecom , which submitted
initial proposals, are currently doing due diligence. Final bids
are due around mid-September.
The South Korean firm has said it will fund half of any
Hynix acquisition from Middle East-based funds.