UPDATE 1-Shareholders extend deadline for Hynix stake bids

* Deadline extended by two weeks amid lack of interest

* No fresh interest likely to lead to block deal

* Shares down 3 pct on overhang, discount concerns
(Adds details)

SEOUL, Feb 1 (BestGrowthStock) – Shareholders of Hynix Semiconductor
(000660.KS: ) have extended the deadline for preliminary bids for a
controlling stake in the memory chip maker, in their latest
efforts to find a buyer before turning to market sales.

Creditors-turned-shareholders of Hynix are hoping to sell up
to a 28 percent stake in the world’s second-biggest memory chip
maker, worth $3.15 billion at the current market value, through a
local auction.

But their second auction failed to draw a single bidder by
the initial Friday deadline for letters of interest. An earlier
auction fell through last November after sole bidder Hyosung
(004800.KS: ) walked away from the process.

Leading shareholder Korea Exchange Bank (004940.KS: ) said the
deadline had been extended by two weeks until Feb. 12 to give
potential investors more time to consider the deal.

Concerns over a share overhang and discounted sales have
pressured Hynix shares as many investors and analysts expect
shareholders to offload stakes in parts in the market if they
fail to find a buyer.

Hynix shares were down 3.08 percent at 0243 GMT, compared
with the wider market’s (.KS11: ) 0.37 percent loss, after losing
13 percent last week alone. [ID:nTOE60R00J]

While the memory chip industry is rebounding in an upcycle,
its highly cyclical nature and heavy requirements have limited
investor appetite for Hynix, which competes with Samsung
Electronics (005930.KS: ) and Japan’s Elpida Memory (6665.T: ).

Stock Market Report

($1=1160.3 Won)
(Reporting by Rhee So-eui; Editing by Jonathan Hopfner)

UPDATE 1-Shareholders extend deadline for Hynix stake bids