Micron goes for Hynix’s memory

Micron Technology has signed a non-binding memorandum of understanding for the purchase of Hynix’s memory business in exchange for approximately 108.6 million shares of Micron common stock.

Micron will also invest $200 million in Hynix in return for a 15% equity stake in Hynix’s continuing non-memory businesses.

As part of the transaction, Korean lenders will provide $1.5 billion of long-term debt financing for use by Micron in its Korean-based operations.

The memorandum of understanding is subject to approval by the Hynix Creditors Council and the Boards of Directors of Hynix and Micron by April 30, 2002.

Assuming approval, the transactions will also be subject to successful negotiation of definitive agreements and approvals from a number of additional parties, including US and European antitrust authorities and the Hynix shareholders.

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