SK Telecom has revealed plans to buy out the 49.44% stake in its SK Broadband division that it does not currently own, as it seeks to ensure greater synergies between the two companies.
SK Telecom is offering minority SK Broadband subscribers a share swap deal at a ratio of 1:0.017, the company said in a regulatory filing.
Owners of SK Broadband shares who do not want to swap them for SK Telecom shares can instead sell them for 4,645 won ($4.17) apiece. The total deal is valued at 706 billion won ($633.46 million).
The Korea Herald quotes an SK Telecom official as stating that the acquisition is “aimed at seeking a synergy effect between the two firms in the fast-changing ICT industry.”
If the offer is approved by SK Telecom's board and SK Broadband's other shareholders, the deal is expected to close in early June. SK Broadband's minority shareholders include South Korea's National Pension fund.
SK Telecom and Samsung recently completed a demonstration of 7.55Gbps mobile data rates using 3D beamforming transmission technology. Samsung is also providing the equipment for SK Telecom's nationwide mobile IoT network rollout.