Maxtor To Sell 28.3 Million Shares of Stock
Maxtor Corporation today announced that it has filed a registration statement with the Securities and Exchange Commission for the sale to the public of up to 28.3 million shares of Maxtor common stock owned by Hynix Semiconductor America Inc. (HSA), formerly Hyundai Electronics America, in an underwritten offering.
In addition, Maxtor and HSA have entered into an agreement in which HSA gives Maxtor the right to repurchase up to $50 million of Maxtor common stock from HSA, at the same price as the shares sold by HSA to the public, simultaneously with the public offering.
Maxtor also announced that it has entered into a non-binding letter of intent for the purchase of MMC Technology, Inc., a wholly-owned subsidiary of HSA, for a purchase price of $1.0 million in cash. MMC manufactures media for hard disk drives. At least 95% of MMC's revenues come from the sale of media to Maxtor. MMC has liabilities totaling approximately $130 million. The acquisition is subject to customary conditions and is expected to close no later than July 31, 2001.