South Korea’s leading wireless carrier SK Telecom Co. is reportedly seeking to acquire a local factory automation equipment manufacturer Toptec Co. to apply and accelerate automation in chip-making sister company that has emerged as the most valuable company in SK Group.

According to sources from the investment banking (IB) industry on Monday, SK Telecom has been drawing up a memorandum of understanding to take over a 36.94 percent stake in Toptec including 29.94 percent stake owned by the company’s founder and Chairman Lee Jae-hwan. Given that the shares would fetch 420 billion won ($394.5 million) at current market value, market experts found that the total value of the deal would reach 500 billion won when attached with management right premium.

As of 11:39 a.m. on Tuesday, shares of Kosdaq-listed Toptec jumped 10.16 percent to 35,250 won, and those of Kospi-listed SK Telecom rose 0.56 percent to 267,500 won in Seoul trading.

Toptec is a partner of the world’s top organic light-emitting diode (OLED) panel maker Samsung Display Co. Industry watchers believe SK Group is pushing for the deal to accelerate clean-room automation of SK Hynix’s fabs.

Founded in 1992, Toptec has grown into a mid-sized company by positing above 1 trillion won in sales last year. Its operating profit over the January to September period last year amounted to 188.7 billion won, more than quadrupling the previous year’s full-year operating profit of 42 billion won. Revenue reached 1.01 trillion won over the same period last year, more than doubling the full-year revenue of 392.6 billion won in 2016. Its full-year operating profit for 2017 is estimated at 250 billion won on sales of 1.5 trillion won.

SK Telecom declined to give out indication, saying nothing has been confirmed.

By Jin Young-tae and Choi Mira

[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]