Susie Pan, Taipei; Rodney Chan, DIGITIMES [Thursday 24 July 2008]
Prime View International (PVI) has revealed that the formal takeover of BOE Hydis has yet to take place because of slow progress by the Korean government working on completing the acquisition.
The Taiwan-based panel maker, which had previously expected to complete the takeover in mid June, said it has already paid the sum needed for the acquisition. It said it has also dispatched its personnel to Korea to help improve Hydis' operations, but Hydis' top management will not be changed in the meantime.
The bankrupt Hydis is currently under the administration of the Korean government, which has been slow in processing the acquisition, PVI said.
PVI Wednesday decided to issue unsecured overseas convertible bonds and overseas depositary receipts to raise about US$188 million to repay short-term loans it has taken out from banks to fund its takeover of Hydis.
PVI last November announced a deal to spend 260 billion won (US$257.68 million) to secure a 95% stake of Hydis.