Idaho (AP)—Memory-chip maker Micron Technology Inc. has agreed to buy
Elpida Memory Inc. for approximately $750 million in cash in a deal that
would boost its wafer manufacturing capacity by about 50%.
specializes in dynamic random access memory chips used in mobile phones
and computers. It has been developing a plan of reorganization since
filing for the largest manufacturing bankruptcy ever in Japan earlier
wanted to reorganize after years of sliding chip prices amid a glut of
supply, punishing competition from South Korea’s Samsung Electronics Co.
and weaker sales due to last year’s flooding in Thailand that disrupted
and Elpida said Monday that the total value of their deal is about $2.5
billion including about $1.75 billion in future annual installment
payments that Micron would make through 2019.
Micron Technology shares rose 29 cents, or 4.6%, to $6.60 in premarket trading.
Elpida’s reorganization plan is expected to be submitted in August to the Tokyo District Court for approval.
month Micron Technology said that it was in talks to purchase Elpida.
Micron Technology said at that time that the Tokyo District Court had
allowed Elpida’s trustees to negotiate an agreement with Micron to
become Elpida’s sponsor and acquire its entire business in accordance
with corporate reorganization proceedings.
The Micron deal requires approval from Elpida’s creditors, the Tokyo District Court and antitrust approvals.
Idaho-based Micron Technology also said Monday that it is buying
Powerchip Technology Corp.’s 24% stake in Rexchip Electronics Corp. for
approximately $334 million. Elpida has about a 65% stake in Rexchip.
Combined, this will give Micron Technology an 89% stake in Rexchip.
deals are expected to close during the first half of 2013. Micron’s
transaction with Powerchip will take place once the Elpida acquisition
Source: The Associated Press