Samil tapped as accounting advisor for Elpida deal
By Kim Yoo-chul
SK hynix, the world’s second-biggest memory chipmaker, has chosen Samil PricewaterhouseCoopers (PwC) as an accounting advisor for its bid to take over for Japan’s Elpida Memory.
SK is working with Samil PwC to prepare to conduct due diligence on the Japanese chipmaker, starting in late April, said sources and officials who are close to the matter.
``Samjong KMPG was also considering taking the advisory role. But this was not possible it is already a financial auditor for SK,’’ said one official, Monday.
SK hynix spokesman Sohn Kyung-bae declined to confirm.
Elpida filed for bankruptcy protection in late February in the largest case of corporate failure among Japan’s manufacturers since the end of World War II.
SK hynix was included on a ``secondary list’’ to take over Elpida with other potential buyers including Japanese firm, Toshiba and Micron Technology of the United States, officials said.
Attracted by the advanced technology concerning mobile DRAMs and TSV packaging owned by Elpida, top management at SK hynix are seeking to boost its capability for smartphones and other high-end mobile digital devices.
Some 3 trillion won will be needed for the acquisition, according to industry sources. Chances are currently low that SK will seal the deal because Elpida’s liabilities totaled some $5.5 billion at the end of March last year.
``It’s been rumored that the Elpida deal is too big for SK hynix considering the huge cash-injection burden,’’ said an official from a local banking industry, asking not to be identified.
It’s expected that SK hynix will amass an additional 4.2 trillion won in cash by selling new shares but this would not be enough to pay back the debt, according to officials.
``If SK hynix makes a joint bid with Toshiba for Elpida, then that won’t have any negative impact on its shares. We believe Toshiba and SK hynix would do best to form a united front to get the most out of that deal,’’ said Song Myeong-sup, an analyst at Hi Investment.