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(LEAD) SK hynix bids for 20 pct stake in Toshiba's memory chip business

All Headlines 16:35 February 07, 2017

(ATTN: UPDATES with SK hynix's confirmation in first 3 paras)

SEOUL, Feb. 7 (Yonhap) -- SK hynix Inc., the world's second-largest maker of computer memory chips, said Tuesday it has submitted a non-binding bid to acquire a stake in Toshiba Corp.'s memory chip business.

In a regulatory filing, SK hynix said the initial bid was submitted last Friday and it was undecided whether it will submit a final bid.

The confirmation came after an industry source said SK hynix submitted a bid to acquire a 20-percent stake in Toshiba's memory business, with a deal expected to cost between 2 trillion won (US$1.8 billion) and 3 trillion won.

The bid is aimed at strengthening SK hynix's NAND flash memory business as global demand for flash memory chips is roaring.

(LEAD) SK hynix bids for 20 pct stake in Toshiba's memory chip business - 1

In January, Toshiba said it would sell about a 20 percent stake in its memory business as it struggles with multibillion dollar write-downs from its nuclear power business in the United States.

Toshiba is the world's second-largest maker of NAND flash memory chips, mainly used in smartphones and other mobile devices.

SK hynix has moved to bolster its NAND flash memory business.

Last month, an affiliate of SK Group, which has SK hynix under its wing, said it agreed to buy a controlling stake in silicon wafer producer LG Siltron Inc.

The latest deal came a month after SK hynix said it would build a new NAND chip plant in South Korea for 2.2 trillion won.
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