Seoul, Korea, 28 September 2009 - SK Telecom (NYSE:SKM, CEO & President Man-Won Jung) announced today that it decided to sell its 3.8% stake in China Unicom back to China Unicom.
Sales price per share is HKD 11.105 and the total proceeds of sale will amount to approximately HKD 10 billion or KRW 1.5 trillion.
In July 2006, SK Telecom purchased convertible bonds worth USD 1 billion from China Unicom Limited, a listed company on Hong Kong Stock Exchange. Then in August 2007, the company converted China Unicom bonds into shares at HKD 8.63 per share. SK Telecom says considering this conversion price, selling price of its China Unicom shares is set at an appropriate level.
SK Telecom said, "This decision falls in line with our vision of becoming a global ICT leader, under which we are making efforts to expand our areas of interest to convergence business that includes distribution, Internet and finance. While adjusting our business portfolio based on the changes in the growth strategy, we made the decision to sell our China Unicom shares."
SK Telecom is planning to use the proceeds from the sale of shares to secure financial soundness and to develop future business models with partners including China Unicom, while expanding its existing convergence business in China. At the same time, the company will also acquire mid-to long-term R&D capability to strengthen its competitiveness so as to create Blue Oceans that will serve as next-generation growth engines.
SK Telecom and China Unicom will continue to maintain their partnership and seek cooperation opportunities in areas such as convergence business.
Meanwhile, the sale of shares is expected to be completed in mid-November after the approval from independent shareholders of China Unicom.
