SK Telecom (SKT), South Korea’s largest mobile network operator in terms of subscribers, has announced plans to acquire those shares it does not already hold in local fixed line voice and broadband provider SK Broadband (SKB).
As noted in TeleGeography’s GlobalComms Database, SKB is majority owned by SKT, which holds 50.56% of the former’s shares, with the remainder held by other domestic and foreign investors. Now, however, SKT has proposed a share swap deal under which SKB shareholders will be able to trade in their existing shares in the latter for SKT stocks at a ratio of 1:0.017. Those SKB shareholders that do not want to swap their shares have, meanwhile, been given the option of selling their shares at a price of KRW4,645 (USD4.17) until 5 May 2015. If approved by both SKT’s board and SKB current minority shareholders, the stock swap is expected to be completed by 9 June.
Commenting on the development, an unnamed SKT official was cited as saying: ‘The acquisition is aimed at seeking a synergy effect between the two firms in the fast-changing ICT industry.’