Hynix completes non-memory chip unit sale

Hynix Semiconductor Inc. concluded an $830 million sale of its non-memory chip division to one of the largest private equity firms in the world. The company said yesterday that Citigroup Venture Capital (CVC) Equity Partners LP bought the sector for 954.3 billion won ($831.2 million), including 379.3 billion won in assumed debt. Hynix’s financial structure is expected to improve as its debt-to-equity ratio will be reduced to approximately 80 percent from 110 percent as of late June. Hynix Semiconductor has been restructuring its business through continued asset sales and spin-offs since 1997. CVC Equity Partners, CVC Asia Pacific Ltd., and Francisco Partners, a U.S.-based technology-focused private equity fund, will operate the unit as a separate company called MagnaChip Semiconductor Ltd. This business involves manufacture of display driver and camera phone image sensors. Hynix said it aims to focus on its core memory business, which includes DRAM, flash memory and pseudo SRAM products.