Doosan Group has effectively finalized its acquisition of semiconductor wafer maker SK Siltron. Observers say Doosan, which has expanded its business focus from traditional heavy industry and energy to semiconductor materials and back-end processes, has reached a definitive turning point in its transformation.
According to the business community and investment banking (IB) industry on the 18th, Doosan Co. is expected to sign a stock purchase agreement (SPA) this week to acquire SK Siltron. The deal covers a total of 70.6%, including SK Group's 51% equity in SK Siltron and a 19.6% equity tied to a total return swap (TRS). The acquisition is estimated at about 5 trillion won. Doosan has been in talks for a little over five months since it was named the preferred bidder for SK Siltron's equity sale late last year.
The remaining 29.4% equity held personally by SK Group Chairman Chey Tae-won is also said to be included in the acquisition. Doosan is reportedly moving to first sign contracts for SK Group's equity and the TRS equity, then secure Chey's personal equity within the year through a separate process. Once the transaction is completed, Doosan will hold 100% equity in SK Siltron.
SK Siltron, which produces wafers, the base material for semiconductors, ranks third globally by market share (based on 12-inch wafers). In 2017, SK Inc. acquired a total of 70.6%—51% equity in LG Siltron from LG Group affiliates and 19.6% from financial investors—for about 790 billion won. At the time, Chey personally purchased the remaining 29.4%.
SK Group's move to sell SK Siltron is largely seen as an effort to bolster financial stability and secure investment resources as part of a groupwide business restructuring. SK Inc. has been disposing of some assets as part of rebalancing and concentrating resources on core businesses such as artificial intelligence (AI) and semiconductors. In the business community, there is also speculation that if SK Siltron is sold outside the group, it could be an opportunity to broaden a customer base that has centered on SK hynix.
Doosan will strengthen its semiconductor portfolio through this acquisition. Doosan entered the semiconductor market in 2022 by acquiring DOOSAN TESNA, a back-end testing company. With the addition of the electronic BG's copper-clad laminate (CCL) business, the robotics and automation segment, and SK Siltron's wafer business, the company will establish a value chain spanning semiconductor materials, back-end testing, and automation solutions. However, given the large, 5 trillion won acquisition, managing the financial burden is cited as a task Doosan must address.