South Korea’s SK Telecom plans to take full control of local ISP and fixed-line operator SK Broadband via a share transfer transaction valued at KRW706bn (US$627.2m).
The telco, which has a 50.56% stake in the Seoul-based ISP, said in a regulatory…
South Korea’s SK Telecom plans to take full control of local ISP and fixed-line operator SK Broadband via a share transfer transaction valued at KRW706bn (US$627.2m).
The telco, which has a 50.56% stake in the Seoul-based ISP, said in a regulatory filing that it will offer 2.47 million treasury shares in exchange for SK Broadband stock it does not already own.
SK Broadband shareholders can also opt to sell their shares to the telco for KRW4,645 (US$4) each until 5 May.
SK Telecom expects the share swap to be completed by 9 June, subject to relevant approvals.
A spokesperson for the telco said the transaction is aimed at creating “a synergy effect” between the two companies as the ICT sector continues to evolve at a rapid pace.
In early 2008, SK Telecom, the country’s largest mobile operator, acquired a majority stake in SK Broadband (then known as Hanaro Telecom) in a US$1.15bn deal.
