Creditors sell part of Hynix stake at 0% discount

A group of creditors to Hynix Semiconductor last night cashed in part of their remaining stake in the Korean memory-chip maker, raising a combined W923.15 billion $817 million. The well-flagged transaction met with strong demand, especially from domestic investors, and amazingly priced flat to the market despite the fact that the share price has gained in eight of the past 10 sessions.

Clearly investors welcomed the opportunity to buy the stock in size without the risk of moving the market, but the deal was also supported by a perception that the sell-down will remove an overhang on the stock, allowing the share price to continue to head higher in line with a recovery in...