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[SKT Corporate Split] SK Telecom to Divide into Telecom and Investment Companies... Also Decides on 5-to-1 Stock Split

[SKT Corporate Split] SK Telecom to Divide into Telecom and Investment Companies... Also Decides on 5-to-1 Stock Split


[Asia Economy Reporter Joesulgina] SK Telecom is splitting into a telecommunications company and an investment company for the first time in 37 years. This is part of the long-standing governance restructuring challenge within the SK Group.


SK Telecom aims to fully launch group-level semiconductor investments through the newly established investment company, while establishing a growth structure and investment foundation suitable for each sector to gain proper corporate value recognition. Along with the corporate split, a stock split will also be pursued. Starting with SK Group, there are expectations that the long-standing issue of governance restructuring in the business community will accelerate.


On the morning of the 10th, SK Telecom held a board meeting and resolved to split into ‘SK Telecom’ and ‘SKT New Investment (tentative name)’ through a spin-off. The surviving company will retain the name SK Telecom, and the new company’s name will be finalized before the extraordinary shareholders’ meeting in October. The split company will launch on November 1. The split ratio was decided based on net asset book value as 0.6073625 for the surviving company and 0.3926375 for the new company.


▶Related article page 6 <[SKT Corporate Split] Semiconductor M&A Expected... SKT-led 'Deep Change' Begins in Earnest>

[SKT Corporate Split] SK Telecom to Divide into Telecom and Investment Companies... Also Decides on 5-to-1 Stock Split


Going forward, the surviving SK Telecom company will focus on AI and digital infrastructure based on telecommunications, while the new company will intensify investment activities centered on semiconductors.


Most of the new business areas, including SK Hynix, among SK Telecom’s existing subsidiaries will be placed under SKT New Investment. Sixteen companies such as SK Hynix, ADT Caps, 11st, T map Mobility, One Store, Content Wave, Dreamus Company, SK Planet, FSK L&S, Incross, NanoEntek, SparkPlus, SK Telecom CST1, SK Telecom TMT Investment, ID Quantique, and Techmaker will be organized under the new company. The new company will also compete with leading businesses in security, commerce, and mobility sectors and prepare future growth engines through initial public offerings (IPO).


The surviving SK Telecom aims to transform into an ‘AI and Digital Infrastructure Company’ by leveraging its leadership as the number one in 5G. Under the surviving company are SK Broadband, SK Telink, PS&Marketing, F&U Credit Information, Service Top, Service Ace, and SK O&S, which can create synergy in wired and wireless communication businesses.


The CEOs to lead each company will be announced soon. Industry insiders expect that after the spin-off, CEO Park Jung-ho, who concurrently serves as vice chairman of SK Hynix, will lead the new company, while Yoo Young-sang, head of the mobile network operator (MNO) business, will lead the surviving company.


On the same day, SK Telecom’s board also approved a stock split. Accordingly, one common share with a current face value of 500 won will become five shares with a face value of 100 won each. The total number of SK Telecom issued shares will increase from the current 72,060,143 shares to 360,307,150 shares.




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