SK Telecom has announced that its fixed broadband subsidiary SK Broadband and t-broad, a subsidiary of Taekwang Industrial Co., Ltd., signed a merger contract to better respond to the rapid changes in the pay TV market and strengthen their media competitiveness.
t-broad is the second largest cable TV operator in Korea with 3.14 million subscribers as of the end of June 2018. t-broad’s services are available in major cities including Seoul, Gyeonggi, Busan and Daegu.
The ownership structure of the merged entity will be as follows: SK Telecom 74.4 percent; Taekwang Industrial 16.8 percent; Financial Investors 8.0 percent; and treasury stock and others 0.8 percent.
Through corporate valuation analysis conducted by an external accounting firm, SK Telecom and Taekwang Industrial set the merger ratio at 75:25.
Moreover, the two companies have successfully attracted an investment of around KRW 400 billion from a Financial Investor MiraeAssetDaewoo.
The merged entity will officially launch upon receiving approval from the Korean Government.
Through the merger, SK Broadband and t-broad will become a media company with around 8 million subscribers. According to the Ministry of Science and ICT, the number of SK Broadband’s IPTV subscribers stood at 4.54 million and the number of t-broad’s cable TV subscribers reached 3.14 million as of the end of June 2018.
SK Telecom stated that it expects the solid financial structure of t-broad to have a positive impact on its consolidated earnings and will continue to make multifaceted efforts to promote mutual growth of IPTV and cable TV after the merger of SK Broadband and t-broad.
TelecomDrive Bureau covers the latest developments happening in the space of communications, devices and innovations in targeted geographies of India, SAARC, Asia Pacific, Middle East and Africa regions.
TelecomDrive Bureau is headed by Zia Askari. He can be reached at firstname.lastname@example.org