The buyer is a wholly-owned subsidiary of newly-formed Magnus Semiconductor LLC, which was established by Alchemist Capital Partners Korea Co. Ltd. and Credian Partners Inc. as a consortium to take on the foundry business. Although not explicitly mentioned in the press release it is thought that SK Hynix has a share in the company.
The purchase price was approximately $350.6 million in cash and the buyer is assuming all severance liabilities relating to the transferred employees, which have a value of approximately $100 million.
MagnaChip said it would use approximately $227.4 million of the net proceeds of the sale to pay off debts.
"This [sale] represents a pivotal chapter for MagnaChip as we are transforming into a streamlined, pure-play standard products company focused on the attractive growth opportunities in our display and power businesses," said YJ Kim, CEO of MagnaChip, in a statement.
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