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CJ Hellovision shareholders approve SK Telecom merger

2 Mar 2016

Shareholders of South Korean cableco CJ HelloVision have approved the company’s planned merger with SK Broadband, a unit of SK Telecom, the Korea Times reports. According to the newspaper more than 97% of the participating investors voted in favour of the KRW500 billion (USD405 million) deal, despite heightened resistance from minority shareholders, rival companies and advocacy groups.

As previously reported by TeleGeography’s CommsUpdate, the takeover deal – details of which first emerged in November 2015 – will see SK Telecom acquire an initial 30% stake in CJ Hellovision from local conglomerate CJ O Shopping for KRW500 billion, before purchasing an additional 23.9% stake through put and call options agreements. The total value of the transaction is expected to reach around KRW1 trillion.

According to the cableco’s investor relations site, as at 31 December 2015 CJ Hellovision claimed a total of 4.102 million cable TV subscribers, 860,253 broadband customers, 673,167 VoIP users and 843,350 MVNO accounts.

South Korea, LG HelloVision, SK Broadband, SK Telecom (SKT)

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