SK Telecom recently announced that the Board of Directors approved the plan to split the company into SK Telecom (surviving entity) and SKT Investment (new entity) through a horizontal spin-off.
The spin-off ratio has been set at 0.6073625 (surviving entity) to 0.3926375 (new entity) based on net asset value. Through the horizontal spin-off, SK Telecom will become two separate companies – an AI and digital infrastructure company that sustains stable and solid growth, and an investment company that invests in semiconductor and information and communication technologies (ICT).
The new entity will actively pursue mergers and acquisitions in the global semiconductor market. It plans to build a semiconductor ecosystem with SK Hynix by investing in innovative technologies including future semiconductor technologies.
Moreover, the new entity will also strengthen its competitiveness by attracting domestic and overseas investment in diverse ICT areas including security (ADT Caps), commerce (11st) and mobility (T Map Mobility) and promote initial public offerings (IPOs) of its subsidiaries to secure future growth engines.
The surviving entity plans to establish itself as an AI and digital infrastructure company by maintaining its growth in fixed and wireless telecommunication and home media based on its leadership in the 5G market. It will further advance its services like Metaverse and sub_scription-based offerings by applying powerful AI technologies. Building on its AI and digital infrastructure technology assets, the surviving entity will increase its investment in data center and mobile edge computing (MEC) cloud business to secure new sources of revenue.
The new entity will have the following 16 companies under its umbrella: SK Hynix, ADT Caps, 11St, T Map Mobility, One Store, Contents Wavve, Dreamus Company, SK Planet, FSK L&S, Incross, NanoEnTek, Sparkplus, SK Telecom CS T1, SK Telecom TMT Investment, ID Quantique and Techmaker.
Park Jung-ho, CEO, SK Telecom
The horizontal spin-off will mark the beginning of a new era for SK Telecom. We will make best efforts to contribute to the advancement of the ICT ecosystem by achieving new and sustainable growth.
to deliver enhanced performance to boost end-user experience
