SK Telecom on Friday launched a 705.6 billion won (€585.9 million) share swap offer for its SK Broadband unit in a bid to acquire the 49.4% of the company it does not already own.
In a filing with the Korean stock exchange, the operator offered 2.47 million shares in return for 146.3 million shares in SK Broadband. Alternatively, SK Telecom has offered to buy out SK Broadband holders for KRW4,645 per share.
The share swap is scheduled to take place on 9 June.
SK Broadband offers triple-play bundles of fixed-line phone, TV and Internet services. SK Telecom acquired a majority stake in SK Broadband, then called Hanarotelecom, in 2008. It currently owns 50.6% of the company.
SK Telecom said in a statement that increasing its holding to 100% will increase management efficiency and create synergies that will "enhance corporate value."
In 2014, SK Broadband generated operating revenues of KRW2.65 trillion (€2.2 billion). It ended the year with 4.8 million broadband subscribers and 2.8 million TV customers.
This story was updated at 10:00am on 23 March to correct the value of SK Telecom’s offer.
