Hynix rids itself of LCD plant for $650m
Chipping away at the debt mountain
Troubled memory maker Hynix has flogged off its LCD operation to a Taiwanese company for $650 million.
As the deal stands, the buyer, Cando, will take 80.1 per cent of the business; Hynix will hang on to the remaining 19.9 per cent. The two companies are mulling over the final details of the plan.
The sale will bring Hynix around 830 billion won, 500 billion won now and the rest some time next year. The up-front payment will go some way to cutting the company's massive multi-trillion won debt, and to building up the one trillion won the company has promised its creditors it raise through the sale of non-core assets.
The LCD operation notched up 320 billion won in sales last year from punching out three million LCDs. It employs 1500 staff. Hynix tried to sell the plant to Philips earlier this year for one trillion won. ®
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