– The asset transfer will cost US$ 380 million – The transfer is expected to be completed by November 30, 2002.
On September 26, 2002 hynix Semiconductor Inc. announced that it had signed an MOU with BOE (BOE Technology Group) of China regarding the sale of Hydis, the TFT-LCD business unit.
hynix will transfer tangible & intangible fixed assets, current assets, operating liabilities and the LCD factory building and related structures still owned by hynix to BOE. The cash payment is US$380 million, of which amount may be increased upon a final due diligence of current assets and current liabilities. To this end, hynix, Hydis and BOE are scheduled to sign a definitive agreement by October 25, 2002 and complete the business transaction by the end of November this year.
By completing this asset transfer and by selling the largest non-core business unit, hynix will achieve significant progress in the scheduled business-restructuring objective. The sale will also allow hynix to concentrate on core business and bolster investment in next generation production facilities. This sale of business will enable Hydis to further extend its TFT-LCD business by being linked to Chinese capital and the market. BOE also said that it is planning to foster TFT-LCD business as their core strategic business by acquiring technology and manufacturing & operating fundamentals of Hydis. It is expected that the business transfer will enable Hydis to diversify its product line utilizing its existing customers and its technology, strengthen its customer service by implementing a more active operating strategy, and expand its business through continuous investment to produce the next generation products. BOE manufactures computer peripheral devices including CRT and monitors, with its headquarter in Beijing, China. It also acquired TN/STN LCD business of Hydis late last year jointly with Semicon Engineering Co., Ltd.
