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Korea Finance Corp. may launch PE fund to buy investee Hynix Semiconductor

  • Anita Davis
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Government-run Korea Finance Corporation (KoFC) is contemplating the launch of a private equity fund that would acquire current investee Hynix Semiconductor Inc., the world’s second-largest memory chip manufacturer.

The consideration comes after KoFC and other Hynix backers have struggled to find a suitable buy their collective 15% stake in the company. The fund would be backed by KoFC as well as these partner investors, which have already reduced their holding in the company from 28% earlier this year. “We plan on trying to find a buyer until the end of this year. We haven't given up hope, but it won't be easy,” KoFC’s CEO Ryu Jae-han told media, adding that the PE fund would be launched “if no buyer materializes."

Analysts suggest that finding a buyer would indeed be difficult as the 15% stake for sale is worth approximately KRW2.03 trillion ($1.8 billion) based on the company’s latest closing price, and the backers, which were previously Hynix creditors before converting their debt for equity, are further seeking a domestic buyer. KoFC and Hynix investors also anticipate that a PE fund would reduce the number investors in the company, better positioning it for another future sale attempt.

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