Hynix and Micron yesterday signed a non-binding MOU, which if fulfilled, could see the conclusion of one of Asia's most engrossing corporate sagas.
According to press releases from both companies, the agreement states that Micron will purchase Hynix's memory business in exchange for 108.6 million shares in Micron common stock. Given that Micron's closing price on Friday was around $29.5, this equates to an overall purchase price of $3.2 billion. Micron will also invest $200 million in cash for 15% of Hynix's other businesses.
In addition, Korean lenders - effectively Hynix's shareholders - will invest $1.5 billion in long term financing for use by Micron in its Korean based operations.
At first glance,...
