Samsung Electronics CB Issue will Bring $100 Million from Intel
Feb 02, 1999, (Comline via COMTEX) -- Samsung Electronics has obtained
a letter of intent from Intel of the United States, under which Samsung
will obtain $100 million from Intel through issuance of convertible
bonds. All necessary procedures on Samsung Electronics' plan to induce
the foreign capital will be finalized in February, company sources
explained. The coupon rate on the proposed convertible bonds will be 5
percent per year, the conversion price will be set at 110,400 won, and
the CBs will mature in February, 2004. This will be Intel's second
investment in Samsung Electronics. Intel, a major CPU provider, bought
a 10-percent equity stake in Samsung's semiconductor plant in Austin,
Tx., for $39 million in 1997. Intel reportedly has decided to make the
second investment in Samsung Electronics in a bid to gain a stable
supply source of Rambus DRAMs, as Intel plans to start sales in June of
the next generation CPU, "Pentium III," mounted by direct Rambus DRAMs.
The cash from Intel will be used for the early mass production of
Rambus DRAMs of 72, 144 and 288 megabits, president Lee Yun-woo of
Samsung Electronics was quoted as saying. ( The Korea Economic Weekly
1999/01/27 )
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