SK Telecom targets November for equity spin-off - Mobile World Live

SK Telecom targets November for equity spin-off

10 JUN 2021

SK Telecom (SKT) set 1 November as the date it will complete a spin-off of its semiconductor and e-commerce operations into a new investment company, after its board approved a move proposed in April to fuel growth.

The spin-off plan will involve SKT’s shares being divided 60:40 between its core telecoms business and the investment company, which is tentatively named SKT Investment.

This business will control 16 companies including chipmaker SK Hynix, e-commerce arm 11st, app market One Store, T Map Mobility and security unit ADT Caps. SKT holds a 20 per cent stake in SK Hynix.

The move will be up for shareholder approval on 12 October. SKT explained the two businesses will seek a listing on 29 November, following a month-long suspension in trading running until 26 November.

SKT plans to move ahead with a five-for-one stock split at the same time it completes the spin-off, which will double the number of shares to 72.06 million.

The company explained its telecoms business will focus on accelerating growth with a focus on digital infrastructure and AI initiatives. It also plans to invest in data centres, mobile edge computing and cloud businesses.

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Joseph Waring

Joseph Waring joins Mobile World Live as the Asia editor for its new Asia channel. Before joining the GSMA, Joseph was group editor for Telecom Asia for more than ten years. In addition to writing features, news and blogs, he...

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