Hynix Semiconductor Sale Failed

The board of directors of Hynix Semiconductor unanimously rejected the motion to approve a memorandum of understanding (MOU) for the sale of the memory chip production lines between Hynix and Micron Technology.

All the directors of Hynix rejected the motion to MOU on the sale of memory business at the directors meeting at the office building in Daechi-dong, Gangnam-gu Seoul on the 30th.

The board of director’s rejection means the end of negotiation between two companies, as MOU can be effective when the boards of directors of these two companies approves it by the end of April. Lee Youn-Soo, vice president of major creditor Korea Exchange Bank officially announced the breakdown of the negotiation immediately after the directors’ meeting.

Through the `standpoint of Hynix directors, ` the board of directors said, “MOU has some problems that the price of Micron stocks, which are bought by the sale price, is overvalued too much, and contingent liabilities are estimated impractically. When the market condition Considered, independent survival is quite possible. ”

Hence, Hynix should seek the way to independent survival, if there is no other alternative plan, and legal management or liquidating is possible, too. However, Creditors are reportedly likely not to provide additional funds making the independent survival uncertain.

Lee Keun-Young governor of the Financial Supervisory Service said, “Hynix will be treated by the market principle. ”

Meanwhile, Park Jong-Sup representative of Hynix, who had led the sale negotiation so far, expressed his will to resign from the director board.

Jeong-Hun Park sunshade@donga.com · Seung-Ryun Kim srkim@donga.com