Abu Dhabi government fund bids for memory manufacturer
State owned Aabar Investments in joint bid for Hynix Semiconductor
Abu Dhabi government owned investment company Aabar Investments has joined up with the South Korean STX Group to make a takeover bid for Hynix Semiconductor.
Aabar has joined with the Korean conglomerate, which mainly has interests in ship building and shipping, to bid for a 15% stake in Hynix, the world's second largest memory chip manufacturer.
STX has said that Middle East investment would fund half of the $1.4 billion bid.
South Korean mobile telecom company SK Telecom has also bid for the stake, which is being off-loaded by a group of creditors of Hynix. Final bids are due in September.
The investment by Aabar, would be an addition to the Abu Dhabi government's interests in the semiconductor market. The government owned Advanced Technology Investment Company (ATIC) is the largest investor in GlobalFoundries, the company formed by the spin off of AMD's chip manufacturing business.