Elpida Bond Holders Expected to Vote Against Micron Purchase

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Micron has not cleared all hurdles in the acquisition of Elpida yet.

A group of bond holders will reportedly vote against the acquisition and claim that, at $750 million, Elpida has been undervalued. In a rather unusual move, the members of the group, which are unknown at this point, said that they would present a counter offer.

Under the current proposal, Micron agreed to pay $60 billion yen, about $750 million, for Elpida's assets, and cover 140 billion yen, about $1.76 billion, in debt in annual installments until 2019. An additional $334 million will go toward a 24 percent stake in Rexchip Electronics. Back in February, Elpida filed for bankruptcy with a total debt of 448 billion yen - about $5.6 billion.

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Douglas Perry
Douglas Perry
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Douglas Perry was a freelance writer for Tom's Hardware covering semiconductors, storage technology, quantum computing, and processor power delivery. He has authored several books and is currently an editor for The Oregonian/OregonLive.

7 Comments Comment from the forums
  • victorintelr
    Are those guys even aware that Elpida has debts that need to eventually be paid?
    Reply
  • willard
    victorintelrAre those guys even aware that Elpida has debts that need to eventually be paid?The bond holders are the people Elpida owes money to. Of course they're aware.
    Reply
  • eddieroolz
    I agree that 750million is way too undervalued. It's almost an insult to the high-quality DRAM chips that Elpida produces.
    Reply
  • hannibal
    So they can wait and lose even more... Nice...

    Reply
  • anti-painkilla
    They are paying a total of USD3.1B (200B Yen) for the company. The 750m is for the assets, the rest is to cover the debt.
    Reply
  • sykozis
    eddieroolzI agree that 750million is way too undervalued. It's almost an insult to the high-quality DRAM chips that Elpida produces.After filing bankruptcy....Elpida is essentially worthless. Most suppliers don't want to deal with a company that filed bankruptcy out of fear that it might happen again. They can either take Micron's offer....or hope the company can survive long enough for a better offer to come along.
    Reply
  • hetneo
    eddieroolzI agree that 750million is way too undervalued. It's almost an insult to the high-quality DRAM chips that Elpida produces.Taking over debt obligation must be included, so they are actually paying $2.51 billion for it.
    Reply