Hynix nixes non-core operations
Two divisions seeking buyers, two more to be spun off
Hyundai - sorry, we just can't used to calling it Hynix - is to spin off its cellphone handset and ADSL operations and sell-off its LCD and networking equipment businesses in order to focus solely on semiconductor products.
The cellphone and ADSL divisions will be converted into independent operations next month through a transfer of assets and debts. Contracts will be signed on 9 April. Hyundai will seed each with 50 million won ($37,000) and maintain a 100 per cent shareholding.
Ultimately, Hyundai officials said, the two companies will become entirely independent of the parent through flotations, the Korean Herald reports.
Last year, both divisions added sales of 712.8 billion won ($534.13 million) and 158.5 billion won ($117.29 million), respectively, to Hyundai's total revenues.
Hyundai is looking for buyers for the other two divisions, but should neither find a potential owner by July, the company may choose to spin them off along the same lines as the ADSL and cellphone operations. ®