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SK Hynix has reportedly decided to pull out from the incoming auction for insolvent Elpida Memory, leaving only two potential buyers for the troubled maker of dynamic random access memory: Micron Technology and a group of private equity funds.
The acquisition of Elpida Memory and its assets, including technologies and a DRAM plant in Hiroshima, Japan, would not "strategically benefit" the company, SK Group's chairman Chey Tae-won told reporters after a board meeting without elaborating, Reuters news-agency reports. Previously SK Hynix indicated that the company was investigating Elpida's financial reports.
As a result, at present there are two potential bidders for the bankrupt maker of memory: Micron Technology, which negotiated about a merge with Elpida early this year, and joint bid by Hiny Capital and Hony Capital.
Elpida Memory plant in Hiroshima, Japan
Elpida filed for bankruptcy protection in late February amid ¥448 billion ($5.5829 billion) in liabilities. A group of Elpida bondholders said last month they may thwart the auction if trustees agree to a reported selling price of ¥150 billion ($1.8692 billion). Even this price is very high as few makers of commodity chips have that much money in bank.
The destiny of Elpida will be clear in the coming week or weeks.
Tags: Elpida, SK Hynix, Hony Capital, TPG, Micron
