SK Telecom (SKT) unveiled plans to create a new holding company housing its semiconductor and e-commerce operations through an equity spin-off, with the aim of driving future growth.
In a statement, the operator explained it will split into two companies: a new entity tentatively named ICT Investment Company will control SK Hynix, 11StreetCo and T Map Mobility; with the existing AI & Digital Infra Company responsible for its traditional telecoms operations.
The company said it expects the split to “create an opportunity for the telecommunications, semiconductor and new ICT businesses to be properly valued in the market to deliver greater value to shareholders”.
It added each company will “build a management structure fit for the business” to enable growth and “provide investors with two separate” options.
The spin-off plans to invest in domestic and overseas semiconductor companies to accelerate the growth of the industry.
SKT plans to complete the move this year after going through the necessary procedures, including securing board and shareholder approval.Subscribe to our daily newsletter Back