SEOUL, September 6, 2001
hynix Semiconductor Inc. announced today that it has signed a definitive agreement with an investor group led by Cando Corporation to establish an international joint venture for its Thin Film Transistor Liquid Crystal Display (TFT LCD) business.
hynix will transfer its TFT LCD business to a joint venture to be formed by the investor group and hynix, with hynix retaining a 19.9% minority equity interest in the joint venture. hynix will receive US $400 million in cash on closing, the retained 19.9% interest in the joint venture, and a purchase price for the buildings and structures which may be deferred for five years, for a total consideration of US $650 million. The transaction is expected to close by the end of November 2001.
“We are very pleased to have entered this partnership with Cando for our TFT LCD business,” said Dr. C.S. Park, Chairman and CEO of hynix. “The transaction also shows hynix’s strong commitment to its restructuring program it announced early this year.” Dr. Harry Ling, President and CEO of Cando Corporation, explained, “Following our successful acquisition of New STI (a leading player in the color filter industry based in Japan), the acquisition of hynix’s TFT LCD business represents a quantum leap forward in achieving our ultimate goal of becoming a global leader in the TFT LCD industry.” Cando Corporation, based in Taiwan, specializes in making color filters for TFT LCD displays. Salomon Smith Barney is acting as financial advisor to hynix, and PricewaterhouseCoopers is acting as financial advisor to the Cando group.
About hynix Semiconductor Inc.
hynix Semiconductor Inc. (HSI) of Ichon, Korea, is an industry leader in the development, sales, marketing and distribution of high-quality semiconductors, including DRAM, SRAM, Flash memory and system IC devices. hynix Semiconductor is the world’s leading DRAM supplier with thirteen semiconductor-manufacturing facilities worldwide, and production capacity of over 300,000 wafer starts per month. In addition, hynix is expanding its system IC business unit with leading technology and added deep-submicron foundry services to strategically broaden its overall semiconductor presence and achieve its goal of leading the global semiconductor market. Based in Korea, hynix maintains development, manufacturing, sales and marketing facilities strategically located worldwide. ###
