News
Operator pushes on with merger amid staunch opposition from rivals.
SK Telecom’s bid to acquire pay-TV provider CJ Hellovision has received a boost after the latter’s shareholders voted overwhelmingly in favour of the deal.
The Korea Herald reported late last week that more than 97% of CJ Hellovision shareholders backed the offer.
"The two companies will ramp up efforts for the nation’s broadcasting industry and consumer values through aggressive investments and service developments," said CJ Hellovision CEO Kim Ji-Seok, in the report.
SK Telecom agreed to acquire CJ Hellovision in November 2015.
The transaction will see SK Telecom pay 500 billion won (€398.2 million) for a 30% stake in CJ Hellovision currently held by CJ O Shopping. The deal allows it to acquire CJ O Shopping’s remaining 23.9% stake in CJ Hellovision at a later date through call and put options.
However, the deal faces stiff opposition from rival operators and consumer advocates over monopoly concerns – the merger will turn the country’s largest telco into its second-largest pay-TV operator as well.
The deal is expected to close in April, although it still requires regulatory approval.
Upon completion, SK Telecom plans to merge CJ Hellovision and its fixed-line unit SK Broadband via a stock swap.
Once the dust settles, SK Telecom will own 75.3% of the combined entity, and CJ O Shopping will own 8.4%
