Korea MagnaChip Semiconductor Sold to Chinese Private Equity Fund for 1.6 Trillion Won... "No Changes to Domestic Operations"

[Asia Economy Reporter Jeong Hyunjin] MagnaChip Semiconductor, a mid-sized Korean system semiconductor company listed on the New York Stock Exchange, is finally being sold to a China-based private equity fund (PEF) for approximately 1.6 trillion KRW. MagnaChip stated that its headquarters, production facilities, and employees will remain in Korea.

On the 29th, MagnaChip Semiconductor announced that it had signed a contract to sell all shares of its U.S. headquarters to the China-based private equity fund 'Wise Road Capital' and related limited partners. The transaction size is about $1.4 billion (approximately 1.5828 trillion KRW), and based on the average stock price over the past three months with a 75% premium applied, MagnaChip shareholders will receive $29 in cash per share currently held, the company explained.

CEO Kim Young-jun said, "This deal will bring the best benefits to shareholders, customers, and employees alike, and it will be an excellent opportunity to accelerate MagnaChip's third growth strategy." He added, "We expect Wise Road to cooperate as MagnaChip grows to the next stage." He also expressed deep gratitude to customers who continue to trust MagnaChip and to employees who are always dedicated to presenting industry-leading products to customers worldwide.

The company emphasized that there will be no changes to domestic employees and business sites after the sale. MagnaChip Semiconductor stated, "After the completion of the sale, MagnaChip's management and employees plan to continue their current roles without change, and offices and research centers in Seoul and Cheongju, as well as the production facility in Gumi, will operate as usual." They added, "MagnaChip's business, including customers and employees, will continue to operate without any impact from this sale transaction."

Wise Road Capital is expected to complete the acquisition process in the second half of this year after procedures such as shareholder acquisition and regulatory approvals. Wise Road Capital also acquired the standard products business of Dutch semiconductor company NXP in 2016 for 3.2 trillion KRW. MagnaChip Semiconductor was spun off from SK Hynix (then Hynix Semiconductor) in October 2004 when the company separated its non-memory division to focus on memory semiconductors.

This content was produced with the assistance of AI translation services.