Sapeon-Rebellion Sign Definitive Merger Agreement at 1 to 2.4 Corporate Valuation Ratio

Integrated Corporation Management to be Led by Rebelion CEO Park Seong-hyun
SKT Supports Global Expansion as Strategic Investor
Merger Corporation Launch Targeted Within This Year... "Global Leap"

SKT announced that its affiliate AI semiconductor company Sapeon Korea and AI semiconductor startup Rebellion have signed a definitive agreement for a merger at a corporate value ratio of 1 to 2.4. The two companies plan to launch the merged entity within this year.

Sapeon-Rebellion Sign Definitive Merger Agreement at 1 to 2.4 Corporate Valuation Ratio

After signing the final merger agreement between Rebellion and Sapion on the 16th, Yu Young-sang, CEO of SKT (right in the photo), and Park Sung-hyun, CEO of Rebellion, are taking a commemorative photo. Photo by SK Telecom

On the 18th, SKT and Rebellion announced that they signed the definitive merger agreement between Sapeon Korea and Rebellion on the 16th at Rebellion's Bundang office in Seongnam, Gyeonggi Province. Since announcing the merger to enhance global AI infrastructure competitiveness by June, the two companies have been conducting mutual due diligence and negotiating specific merger terms.

The two companies agreed on a corporate value ratio of 1 to 2.4 between Sapeon Korea and Rebellion. SKT expects the new merged entity to exceed a corporate value of 1 trillion KRW and become a unicorn company representing South Korea's AI semiconductor industry.

Although the surviving entity after the merger will be 'Sapeon Korea,' the new company's name has been decided as 'Rebellion' since Rebellion's management will lead the merged company. Park Seong-hyun, CEO of Rebellion who has driven the company's growth, will take charge of managing the merged entity.

To ensure stable operation of the merged company by Rebellion's management, the Sapeon shareholders consisting of SK Telecom, SK Hynix, and SK Square have decided to sell 3% of their shares (post-merger basis) before the merger to guarantee Rebellion's management the position of the largest shareholder.

After the merger, to facilitate smooth management of the newly established merged company, major shareholders including Sapeon and Rebellion management have agreed not to dispose of shares without mutual consent for a certain period.

SKT plans to support the merged company's entry into the global AI semiconductor market and enhance competitiveness as a strategic investor after the merger. SK Square and SK Hynix will also support the merged company as shareholders of Sapeon.

SKT and Rebellion view the next two years as the 'golden time' for South Korea to gain a winning edge in the global AI semiconductor market. Following the signing of this definitive agreement, the two companies aim to launch the merged entity within this year.

Sapeon Korea is an AI semiconductor specialized company spun off from SKT's internal R&D organization in 2016. It launched Korea's first data center AI semiconductor in 2020 and has developed high-performance AI semiconductors, including unveiling the next-generation AI semiconductor 'X330' last November.

Rebellion is an AI semiconductor startup co-founded by CEO Park Seong-hyun and others in 2020. Within three years of its establishment, it released two chips and attracted cumulative investments worth approximately 300 billion KRW from domestic and international investors. Following the mass production of the AI semiconductor 'ATOM,' Rebellion plans to introduce the next-generation AI semiconductor 'REBEL' supporting large language models (LLM) by the end of this year.

Yoo Young-sang, CEO of SKT, said, "With this definitive agreement, we can significantly enhance the global competitiveness of 'AI semiconductors,' one of the three major areas in the AI value chain that SKT is building. SKT will continue proactive investments and collaborations to leap forward as a global AI leader."

Park Seong-hyun, CEO of Rebellion, said, "This merger agreement was possible thanks to the grand decisions and support of investors and key business partners of both companies, sharing the consensus that a nationwide all-out effort is necessary for the leap of South Korea's AI semiconductor industry. With the mindset of starting the main game, we will demonstrate South Korea's representative strength in the fierce 'AI semiconductor war' and stand tall as a global AI semiconductor company."