South Korea's largest mobile operator, SK Telecom said on Friday it seeks to acquire the remaining 49.4% stake via share swaps, in internet service provider SK Broadband, in a deal expected to be worth 705.6 billion won (US$667 million).
SK Broadband is Korea's second largest fixed-line telephone and Internet carrier. The company provides traditional phone service and broadband connections to residential and business customers throughout the country. SK Broadband also offers Internet television service via its subsidiary, Broadband media. This TV service includes a variety of VOD contents such as movies, soap operas and educational programs as well as entertainment content such as karaoke, video games, music and shopping.
SK Telecom said in a regulatory filing, "By acquiring 100 percent share in SK Broadband, we seek to optimize management efficiency and generate synergy, while boosting our corporate value. SK Telecom and SK Broadband will establish a full parent-children relationship, cope flexibly with the ICT industry environment and bolster competitiveness for future growth."
Pending approval of the SK Telecom's board and SK Broadband's shareholders, the stock swap is expected to be completed by June 9. If the plan goes through, SK Broadband, which trades on the secondary bourse, will be delisted by June 30.
