Telecom and satellite operator Korea Telecom Corp (KT Corp) is looking to spin off its satellite unit before selling a 49% stake in the business, according to local reports citing investment banking sources.
Samsung Securities, which has reportedly…
Telecom and satellite operator Korea Telecom Corp (KT Corp) is looking to spin off its satellite unit before selling a 49% stake in the business, according to local reports citing investment banking sources.
Samsung Securities, which has reportedly been hired for the stake sale, has already allegedly started tapping local and foreign investors.
KT Corp is expected to keep control of the unit with a 51% interest.
These reports come just a few days after the company announced plans to reorganise its business structure, establishing three new divisions for satellite, media/contents and real estate.
According to the company, on 13 August, creating more accountability for these units would allow them fully capture their potential and accelerate further growth.
Despite having sold a number of its spacecraft, including Koreasat-3 in May 2010, to satellite operator Asia Broadcast Satellite, KT Corp remains active in the industry.
It still owns Koreasat-5 and Koreasat-6, and in July last year signed a multi-million dollar transponder lease agreement with ABS for ABS-2 satellite, which is scheduled to be operational by Q1 2013.
The company also leases capacity from Intelsat and AsiaSat as well as offering a number of Inmarsat services including BGAN and its Global Satellite Phone Service (GSPS).
