SK Telecom has moved to wrap up the process of making SK Broadband a wholly owned subsidiary.
SK on the 26th disclosed a decision on a stock swap and transfer between SK Broadband and SK Telecom. Under the structure, SK Telecom will buy SK Broadband shares held by existing minority shareholders at 15,032 won per share.
SK Telecom in Nov. 2024 signed a share purchase agreement to acquire the entire 24.8% equity in SK Broadband held by Taekwang Group, Mirae Asset Group and others. At the time, the SK Broadband equity held by Taekwang Group and Mirae Asset Group was 16.75% and 8.01%, respectively. Through this, SK Telecom last year increased its SK Broadband equity from 74.38% to 99.14%.
It plans to secure 100% equity by paying cash to the remaining minority shareholders. About 383,100 treasury shares held by SK Broadband are undergoing a cancellation process.
SK Telecom said, "By converting SK Broadband into a wholly owned subsidiary, we aim to enhance management efficiency and flexibility and create business synergies to boost corporate value."
The record date for SK Broadband's shareholder registry is Apr. 10. Objections to the stock swap and transfer can be filed from the 10th to the 24th of next month. SK said, "As this stock swap will proceed under the small-scale stock swap procedure pursuant to the Commercial Act, dissenting shareholders will not be granted appraisal rights."