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To: phbolton who wrote (45903)	5/20/1999 1:14:00 PM
From: DJBEINO	Respond to of 53903

Hyundai Electronics may split in two Hyundai Electronics Industries Co. said yesterday it plans to split into two separate firms, one concentrating on chip manufacturing and the other built around telecommunications and industrial electronics. A company spokesman said the company recently asked the Korea Stock Exchange (KSE) if its plan to split into two firms and list both of them on the exchange is acceptable. "We were told that our plan meets with the relevant requirements," said the spokesman, adding that separate listing of the two new companies is one of the major options for Hyundai Electronics Industries' future. In April, the KSE eased regulations to allow listed companies to split and list spin-off firms on the local bourse in order to help them restructure. Requirements call for a company to have a paid-in capital of 3 billion won with a sales revenue of 20 billion won and debt-to-equity ratio of less than 1.5 times the industry average. Hyundai said it will establish a new semiconductor company after completing a scheduled merger with LG Semicon by October. The company said it also plans to group the remaining four businesses ? telecommunications, TFT-LCD, monitor and auto part equipment ? into a separate company. Hyundai's assets, liabilities, capital and stock will be split in the ratio of 6:4 between the chip firm and the electronics-related company, sources said. But the spokesman said nothing has been fixed yet. "Splitting is just one option for Hyundai, although it is more likely than other corporate restructuring methods such as an asset sell-off or forming a joint venture with foreign investors," said the company spokesman. Hyundai is still looking for a foreign partner for its telecommunications division, he noted. An earlier attempt to bond with Siemens, a German telecom equipment giant, came to nothing. The spokesman said Hyundai is also in serious negotiations with various Taiwanese companies concerning investment in the TFT-LCD business. "Telecommunications and flat panel displays are strong candidates for spin-offs," he said.