Stock Alert: MagnaChip Rises As Co. Decides To Sell Foundry Services

(RTTNews) - Shares of MagnaChip Semiconductor Corporation (MX) are surging more than 25% Tuesday morning after the company decided to sell its Foundry Services Group and and Cheongju Fab 4, to an Alchemist Capital Partners Korea consortium, to focus more as a pure-play standard products company.

As per the deal, the total transaction value is approximately $435 million in cash.

MagnaChip expects to use net operating loss carryforwards to offset a portion of the tax obligations related to this transaction and plans to use the net proceeds to pay off debt.

The transaction is expected to close within four to six months.

MG is currently trading at $11.69. It has traded in the range of $6.30- $16.06 in the past one year.