SK Telecom CEO Park Jung-ho. [Photo by SK Telecom]
Shares of SK Telecom Co. will become suspended from Oct. 26 as the company becomes separated into two – one for wireless-related business and the other to oversee chip and ICT operations – on Nov. 1.
The reorganization scheme gained full blessing from shareholders with a 99.95 percent vote of approval on Tuesday.
Under a 5-to-1 stock split, the new SK Telecom will have 60 percent of the assets of the old SK Telecom, while SK Square, the holding company over chip and ICT will have 40 percent.
Upon the separation, SK Telecom will focus on AI and digital infrastructure services on top of the existing telecommunications business with an aim to boost its annual revenue to 22 trillion won ($18.4 billion) by 2025 from 15 trillion won last year.
Its newly launched subscription-based platform “T Universe” linked to its various partners including online malls and video streaming services, metaverse service with “Ifland” platform as well as AI-powered voice call application “Nugu” will be the next growth engines, it said.
SK Telecom plans to raise its revenue from AI-based platforms to 1.7 trillion won from 200 billion won and from digital infrastructure services to 4.5 trillion won from 1.4 trillion won. Its goal is to increase the revenue from non-telecom businesses to 28 percent from 10 percent.
SK Square will be responsible for new investments in semiconductors and information and communications technologies with an aim to triple its net asset value to 75 trillion won by 2025 from current 26 trillion won.
Among the 16 subsidiaries, ADT Caps, 11st Street, T Map Mobility, One Store and Contents Wave will go public by 2025 to maximize their corporate values.
“The primary purpose of the separation is to maximize the shareholders’ value,” said Park Jung-ho, current CEO of SK Telecom who will head the non-telecom business SK Square. “We’re very grateful to our shareholders for their support to the demerger scheme, and we’ll go all out to enhance our business.”
The remaining SK Telecom will be led by Ryu Young-sang, president of mobile network operations division at SK Telecom.
SK Telecom shares finished 0.67 percent higher at 302,500 won in Seoul trading on Wednesday.
The remaining SK Telecom will be relisted on the Kospi on Nov. 29 after its trading will be suspended for a month starting Oct. 26. SK Square will be listed on Nov. 29 as well.
By Lee Seung-yoon and Lee Ha-yeon
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