April 17, 2024

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[THE INVESTOR] SK Telecom will invest up to 400 billion won (US$367.50 million) in its sister company, NSOK, instead of placing a bid for the nation’s second-largest security company ADT Caps, according to industry sources on Dec. 18.

The nation’s largest telecom operator has already incorporated SK Telink as a wholly owned subsidiary. NSOK, a subsidiary of SK Telink, plans to implement a rights offering worth 100 billion won in the near future. Taking into consideration the preparation period, the offering is likely to be completed by early next year, they noted.

SK Telink is expected to pay a substantial amount of money for the rights offering. As of end-September, it had 308.5 billion won in assets, including 127.3 billion won cash reserves.

SK Telecom plans to increase its security business by injecting 300 billion won to 400 billion won by 2020. It believes the business can create a great deal of synergy with its Internet of Things and artificial intelligence businesses. The company has also stated that it is not considering a merger of SK Telink and NSOK.

By Alex Lee (alexlee@heraldcorp.com)