(Maxtor going public)
Hyundai Electronics' Maxtor Files for $575 Mln Stock Sale
Washington, June 5 (Bloomberg) -- Maxtor Corp., the computer disk drive manufacturer indirectly owned by Korea's Hyundai Electronics Industries Co., filed for a $575 million initial public offering.
Maxtor, based in Milpitas, California, will sell an undisclosed number of common shares, using $255.5 million of its proceeds to repay debt. Hyundai Electronics America, the Hyundai Electronics unit that owns Maxtor, also plans to sell some of its Maxtor shares through the IPO.
Hyundai Electronics last month told the Yonhap News Agency that it would seek to sell shares in U.S. subsidiaries such as Maxtor and MMC Co. Hyundai Group, an affiliate of Hyundai Electronics, also has said it aims to raise $8.5 billion for debt reduction through asset sales.
Hyundai Electronics acquired a 40 percent stake in Maxtor in 1994 after the U.S. company's financial performance deteriorated.
In early 1996, Hyundai Electronics America acquired the rest of Maxtor's common shares held by the public.
Since that time, Hyundai has tried to reverse Maxtor's financial troubles. That effort, combined with strong demand for personal computers, may be paying off.
Maxtor's revenue for the quarter ended March 28, 1998, more than doubled to $549.6 million from $247.0 million in the same period one year earlier. The company's net loss fell to $10.3 million for the 1998 quarter from a $55 million loss during the comparable 1997 period.
Underwriters for the stock sale will include: Salomon Smith Barney; Hambrecht & Quist; Lehman Brothers; Merrill Lynch & Co.; and NationsBanc Montgomery Securities LLC. Maxtor plans to have its shares trade on the Nasdaq Stock Market.
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