(Nikkei BP Group)
(No.1 High-Tech News Site in Japanese)
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| Hyundai Electronics to Spin Off Communication Device Sector
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November 9, 1998 (SEOUL) -- Hyundai Electronics Industries Co. will spin
off its communication device sector and turn it into a joint venture
with Siemens AG of Germany, a company spokesman said Nov. 5.
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Siemens will buy a 49 percent stake in the new company for about US$200
million and Hyundai Electronics will hold managerial rights, industry
watchers said.
Also, the two companies formed a strategic alliance covering marketing
and technology transfer, which will allow Siemens to acquire Hyundai's
CDMA digital technology.
Hyundai began negotiations with Siemens in late October. At that time,
the German company agreed, in principle, that it would participate in
Hyundai's efforts to attract foreign capital.
Hyundai will use the proceeds from Siemens to advance its restructuring
and expand its facilities investment. Many units have been spun off
from Hyundai Electronics since early this year. They include those of
personal computers, satellite components and semiconductor assembly.
Recently, the company announced an additional spin-off plan of its LCD
and electronic auto-parts sector, leaving only semiconductor fabrication
untouched.
Industry watchers regard the moves as part of Hyundai's agreement to
merge its semiconductor business with LG Semicon later this year.
(Maeil Business Newspaper, Korea)
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