Hyundai Sells Semicon Shares to U.S. Venture Firm

Hyundai Electronics on March 15 announced its intention to sell 90 percent of Chip PAC, one of its semiconductor affiliates, to an American investment company in order to mobilize funds for Hyundai's upcoming acquisition of LG Semiconductor.
Hyundai announced that it has signed a contract with Bain Capital and Citicorp Venture Capital for the sale of the shares.
According to the contract, Hyundai will deliver its Chip PAC shares to the consortium in return for 500 million dollars and under the condition that the consortium write off the 50 million dollars Hyundai Electronics owes Chip PAC.
Kim Young Hwan, president of Hyundai Electronics said, 'By selling the majority of Chip PAC's shares, Hyundai will be able to concentrate on semiconductor production while Chip PAC can independently focus on assembling semiconductors.'
Chip PAC was founded in July 1998 in Santa Clara, California by Hyundai with a capital fund of 173 million dollars. Hyundai will retain a 10 percent stake in the company, which employs 3500 people. Last year, it recorded total DRAM (Dynamic Random Access Memory) sales of 330 million dollars.