SEOUL, October 01 (AJP) - SK hynix said Thursday that no decision has been made on a potential U.S. listing of its NAND subsidiary Solidigm, amid concerns that an initial public offering could dilute the economic interests of existing shareholders.
"We are reviewing various options to strengthen Solidigm's competitiveness, but nothing has been decided," SK hynix said in a statement.
The chipmaker said Solidigm continues to assess investment needs to expand production capacity and strengthen its technological competitiveness, while potential funding options could include both internal resources and external capital.
SK hynix stressed that long-term shareholder value would be the key criterion in any decision, saying it would consider the financial impact of external fundraising on existing shareholders and review appropriate shareholder protection measures.
The statement follows a Reuters report that Solidigm has been meeting investment banks over a potential U.S. IPO that could take place as early as next year.
Solidigm was formed from Intel's former NAND and SSD business, which SK hynix acquired as part of a $9 billion deal announced in 2020.
AJP Takeaways
- SK hynix said no decision has been made on a potential U.S. IPO of Solidigm.
- The company is considering both internal funding and external capital to support Solidigm's investment needs.
- SK hynix said long-term shareholder value will guide any decision and pledged to consider measures to protect existing shareholders.
Copyright ⓒ Aju Press All rights reserved.
