SEOUL--Troubled Hynix Semiconductor Inc. of Korea is set to sign a preliminary deal to sell its non-core semiconductor assets to a fund led by Citigroup, according to a report from Reuters. The value of the deal is worth $600 million, according to the report issued today (November 26, 2003).
For some time, Hynix has been in talks with a venture capital run by Citigroup over the sale of its non-memory chip business (see September 2 story). This part of the business generates one fifth of its annual revenues, in order to raise cash for investment in its memory chips, according to the report.
"The two (Citigroup and Hynix) are making big progress in the negotiations to sign a legally binding memorandum of understanding by the end of this year," a source close to the talks told Reuters in the report.