[THE INVESTOR] SK hynix’s investment to acquire a unit of Toshiba should be seen from a long-term perspective, said Samsung Securities on May 21, maintaining a “buy” recommendation and 100,000 won (US$92.44) target price.
It will complete the investment by early June and there are a number of opportunities for collaboration with other companies for synergies. Toshiba is the only rival of Samsung Electronics in terms of technology, and following restructuring of the Japanese firm there could be many strategic changes in the industry, said analyst Hwang Min-seong.
As a member of the multinational consortium that won the bid, SK hynix will secure a 15 percent stake in the Toshiba unit when the convertible bonds are converted after an IPO, explained Hwang.
By Hwang You-mee (glamazon@heraldcorp.com)