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소아쌤

SK Telecom hints at possible scrap of mega-merger plan

By KH디지털2

Published : May 10, 2016 - 11:44

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Korea's top mobile carrier SK Telecom said its bid to take over the country's top operator of cable channels may end in vain, industry sources said Tuesday, marking the first time for the company to express a negative stance on the project.

In the report handed to the New York Stock Exchange last month, SK Telecom said it may not succeed in carrying out the deal if it fails to earn the government's approval. It marked the first time for the company to make a comment on a possible rupture of the deal.

SK headquarters in Seoul (Yonhap) SK headquarters in Seoul (Yonhap)

SK Telecom offered to buy CJ Hellovision from CJ O Shopping in November of last year in a deal estimated at 1 trillion won ($855 million), with a plan to merge it with its wholly owned subsidiary SK Broadband.

The mobile carrier intends to buy additional shares from CJ O Shopping, which owns around a 54 percent stake in CJ Hellovision.

SK Telecom offered to purchase a 30 percent stake in CJ Hellovision and buy the remainder later through options.

The proposed takeover, however, was not immediately approved by the government, especially as the country's two other mobile carriers, KT and LG Uplus, have been casting concerns over SK's dominant position in the market, adding the move may violate the fair trade law.

Industry watchers said SK Telecom's latest report may spark a controversy as the company told Korean investors "it does not think" the plan will be scrapped. SK Telecom said the U.S. report was based only on a "formality." (Yonhap)

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