The block trade comes following the tech company’s earnings announcement and after gains in Asian markets yesterday. It prices at a 1% discount to the latest close.
The deal comes after a study aimed at boosting the overall valuation of the parent company and attracts strong interest from event-driven hedge funds as well as long-only investors.
SK Hynix, a leading semiconductor supplier, makes its first US acquisition with the purchase of California-based Link_A_Media Devices, a maker of memory-chip controllers.
Business risks for semiconductor companies remain low, but increasing LBO activity and higher leverage in the sector could place downward pressure on ratings.
