Hynix considers selling new shares to boost liquidity

(ATTN: RECASTS headline; UPDATES throughout with Hynix's filing)
SEOUL, April 9 (Yonhap) -- Hynix Semiconductor Inc., the world's second-largest
maker of computer memory chips, said Tuesday it was considering selling new
shares and assets to beef up its capital.
Hynix "reviewed measures including a rights offering and sale of assets, but
creditors haven't come to a decision," the chipmaker said in a regulatory filing.

Earlier in the day, a source said creditor banks may help Hynix raise some 700
billion won (US$517.8 million) via a rights offering to help it overcome a cash
shortage. The creditors, led by Korea Exchange Bank, are major shareholders of
Hynix.
Hynix was also considering raising up to 600 billion won by selling its assets,
the source said on condition of anonymity. The creditors will hold a meeting
later this month to decide on details.
Hit by the news of the possible sale of new shares, shares of Hynix dived more
than eight percent in late afternoon trading in Seoul.
But some analysts say the new financial aid may indicate a slow recovery of the
semiconductor industry, which has been severely battered by a long price slump.
Hynix's German rival, Qimonda AG, declared bankruptcy early this year.
In the second-quarter of this year, the average selling price of dynamic random
access memory (DRAM) chips is expected to rise about 30 percent from the previous
quarter as Taiwanese chipmakers have cut output, said Shinyoung Securities
analyst Lee Seung-woo.
Despite an expected recovery in DRAM prices, the analyst expected Hynix to post a
net loss of 908 billion won on sales of 6.3 trillion won this year.
Last year, Hynix reported a net loss of 4.36 trillion won, compared with a net
profit of 346.3 billion in 2007, on sales of 6.5 trillion won.
(END)