SK Telecom (SKT), the largest mobile operator in South Korea, is close to finalising a deal to acquire factory automation technology company Toptec, The Korea Herald reported.

Despite Toptec denying the report in a regulatory filing, an SK Holdings representative told the newspaper the operator is close to making a final decision on the acquisition. Several reports tipped SKT to sign an agreement with the Korea-based company by the end of the week.

However, the operator said in a regulatory filing it is yet to confirm an acquisition of a stake in Toptec.

SKT reportedly wants to expand into the smart factory area to drive growth as it rolls out its 5G network. The operator, which is the largest shareholder in SK Hynix, the second-largest chipmaker in the world, also wants the subsidiary to use Toptec’s technologies in its semiconductor fabrication lines, The Korea Herald said.

In January 2017 SKT announced plans to invest KRW5 trillion ($4.1 billion) over the next three years to develop artificial intelligence and IoT technology and services.