Magnachip sells fab and foundry to private equity for $350m
MagnaChip Semiconductor has sold its mixed signal foundry business and Fab 4 in Korea to two local private equity companies for $350m.
The deal reduces the debt on the rest of the company and sees Fab 4 and staff moving over to Magnus Semiconductor. This is owned by Alchemist Capital Partners Korea Co., Ltd. and Credian Partners, both based in Korea.
Magnachip intends to use approximately $227.4m from the deal to pay off all its outstanding 6.625% Senior Notes due 2021, of which $224.25m was due on August 31, 2020.
“This represents a pivotal chapter for MagnaChip as we are transforming into a streamlined, pure-play standard products company focused on the attractive growth opportunities in our Display and Power businesses,” said YJ Kim, CEO of Magnachip. “We will use a portion of the net proceeds from the sale to de-leverage by paying off $224.25 million of our outstanding debt, eliminating a substantial portion of our annual interest expense. With sharpened focus and an improved balance sheet, we are committed to strive for sustainable and profitable growth.”
Magnachip董事会主席Camillo Martino说：“董事会对交易的成功完成感到满意。”“该公司正在定位未来的成功，从而提高了我们股东的价值。”
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