SEOUL, KOREA - The preliminary bidding for Dongbu HiTek, a system semiconductor foundry, will be held on June 18. It remains to be seen whether the deal considered the last important piece of the Dongbu Group restructuring will go smoothly as planned. According to Korea Development Bank on June 5, principal underwriter Nomura Securities would hold a preliminary bidding for Dongbu HiTek. About three to five strategic investors and financial investors have shown interest in participating in the bidding.

 

A Korea Development Bank official said, "At the preliminary bidding we will ask the candidates what their primary motivation for acquisition is and how they will come up with the fund."

 

Of the firms that have received the request for proposal, there is no large domestic firm like LG Electronics or SK Hynix which makes it highly improbable the deal would go through. Earlier, domestic fabless firms had submitted a petition to the Ministry of Trade, Industry. and Energy that Dongbu HiTek be sold to a large domestic company.