SK Telecom has made SK Broadband a wholly owned subsidiary. The move is aimed at shortening management decision-making steps and boosting synergy among fixed-mobile, media and corporate businesses.
According to the Financial Supervisory Service's electronic disclosure system on the 1st, SK Telecom completed a comprehensive stock exchange on the 29th and secured 100% equity in SK Broadband. Its previous stake was 99.24%, and it bought all remaining shares through this exchange.
The exchange consideration will be paid in cash at 15,032 won per share without issuing new shares. The earmarked tax payment date is the 8th. Of the common shares purchased through the exercise of appraisal rights during the stock exchange, 27,408 shares were entirely canceled by a board resolution.
SK Telecom expects that turning SK Broadband into a wholly owned subsidiary will make resource allocation and business restructuring more flexible. In particular, observers say the two companies can expand collaboration not only in existing businesses centered on IPTV and high-speed internet but also in growth areas such as AI data centers, submarine cables and corporate solutions. SK Broadband is increasing the share of new businesses, including data centers, amid stagnation in the pay-TV market.
However, SK Telecom drew a line at speculation about a merger. The company said the move is intended to improve management efficiency and strategic flexibility and noted that it has no separate merger plan.