KT Skylife Co., a satellite broadcasting affiliate of local telecom giant KT Corp., was chosen as the preferred bidder to buy cable TV operator Hyundai HCN Co., the company said Monday, beating out rival telecom operators.
The country's three major mobile carriers, including SK Telecom Co. and LG Uplus Corp, have been racing to acquire the cable TV operator which has been put up for sale since late March, as they look to strengthen their presence in the local pay TV market.
The acquisition date and price are currently undecided, Hyundai HCN said in a regulatory filing.
Industry insiders had estimated that the deal could fetch over 400 billion won ($334.5 million).
The acquisition deal requires approval from regulators, including the Korea Communications Commission and the Korea Fair Trade Commission.
"We will closely cooperate with the government for a swift and smooth review process," KT Skylife said in a statement. "We plan to maximize the synergy between the two companies with new broadcast products, vitalize market competition and expand consumer choice."
If things go smoothly, the satellite broadcaster will absorb Hyundai HCN's 1.3 million subscribers and widen its gap with local rivals in the pay TV market.
The cable TV operator held a 4 percent market share at the end of last year, according to data from the ICT ministry.
KT and its subsidiary at the time held the top spot with a 31.5 percent share, followed by LG Uplus and its affiliate LG HelloVision Corp. at 24.9 percent, and SK Telecom's affiliate at 24.2 percent.
The latest deal comes after major merger and acquisition deals in the local pay TV market.
Last year, LG Uplus took over the country's largest cable TV firm CJ Hello Co., now named LG HelloVision, while SK Telecom's affiliate SK Broadband Co. merged with the No. 2 cable TV provider t-broad Co. earlier this year.
More deals are expected as mobile carriers seek to purchase other major cable TV operators, such as D'Live Co. and Central Multi Broadcasting Co. (Yonhap)