April 27, 2024

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[THE INVESTOR] SK Group is seeking to further tighten its grip on LG Siltron, LG’s chip wafer business unit that it acquired in January, by acquiring more stake adding to its current 51 percent ownership.

According to industry sources on May 1, SK Holdings, the holding unit of the nation’s third-largest conglomerate, recently signed a memorandum of understanding to buy a 19.6 percent stake in LG Siltron from KTB Private Equity.

SK Chairman Chey Tae-won is also reportedly seeking to acquire another 29.4 percent stake owned by creditors, including Woori Bank, sources added.

SK, which owns the nation’s No. 2 chipmaker SK hynix, acquired a 51 percent stake in LG Siltron from LG Corp. for 620 billion won (US$543 million) on Jan. 24 -- in a move to become a leading player in the soaring semiconductor materials market.

Following the acquisition, the group has been seeking to acquire further stake -- at least two-third shares -- in order to wield more influence over key business decisions, especially mergers and acquisitions that are considered crucial for growth.

LG Siltron that produces silicon wafers, a key component for chips, reported 84.5 billion won in sales and 3.5 billion won in operating profit last year. It was the fourth-largest player in the market.

The latest acquisition comes less than two years after SK bought SK Materials, then OCI Materials, a gas producer for semiconductors.

By Lee Ji-yoon (jylee@heraldcorp.com)