Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

Last Week in Event SPACE: Toshiba, MMC Corp, Japan Post, China Logistics, Pershing Square, Hang Lung

Founder/CEO of ROK Advisory, ROK Advisory LLC

Ken S. Kim

Founder/CEO of ROK Advisory

ROK Advisory LLC

ROK is an independent research advisory firm. We guide you to minimize the information gap between foreign and local investors in Northeast Asia with a focus in Korea, Taiwan and Japan.

Independent Research Advisory Firm

Thematic (Sector/Industry)

<p>Does holding company ("holdco") discount in Korea apply to the likes of <a href="https://www.smartkarma.com/entities/sk-telecom-co-ltd-bbccd86c-474d-4a4d-946d-10e911a225a2" target="_blank" data-smartkarma-citation="entities:395:1" rel="noopener">SK Telecom (017670 KS)</a> , <a href="https://www.smartkarma.com/entities/sk-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:393:1" rel="noopener">SK Holdings (034730 KS)</a> (now Inc), <a href="https://www.smartkarma.com/entities/osstem-implant-co-ltd" target="_blank" data-smartkarma-citation="entities:1450:1" rel="noopener">Osstem Implant (048260 KS)</a> , <a href="https://www.smartkarma.com/entities/lg-chem-ltd" target="_blank" data-smartkarma-citation="entities:3583:1" rel="noopener">LG Chem Ltd (051910 KS)</a> , <a href="https://www.smartkarma.com/entities/kakao-corp" target="_blank" data-smartkarma-citation="entities:15002:1" rel="noopener">Kakao Corp (035720 KS)</a> , <a href="https://www.smartkarma.com/entities/fila-holdings-corp" target="_blank" data-smartkarma-citation="entities:10699:1" rel="noopener">Fila Holdings (081660 KS)</a> and others? To answer that question I think we need to know the history of the holdco in Korea.</p>

Does holding company ("holdco") discount in Korea apply to the likes of SK Telecom (017670 KS) , SK Holdings (034730 KS) (now Inc), Osstem Implant (048260 KS) , LG Chem Ltd (051910 KS) , Kakao Corp (035720 KS) , Fila Holdings (081660 KS) and others? To answer that question I think we need to know the history of the holdco in Korea.

The Holding Company Dilemma in Korea -  What's the Right Discount?

Korea / Special Sits, Pairs, Index Rebalancing, Clepsydra Capital

Sanghyun Park

Korea / Special Sits, Pairs, Index Rebalancing

Clepsydra Capital

Investigate special situations, pairs, and index rebalancing trades in Korea.

<p>We now have the spinoff details, meaning that we can now reasonably estimate each spinoff company's valuation.</p><p>SK Investment is relatively easy to estimate as it is a pure holding company without any meaningful operating operation. At the usual 50% local holding company discount to NAV, SK Investment's valuation should be slightly higher than ₩12T.</p><table class="table table-striped">
<colgroup>
<col width="100">
<col width="100">
<col width="100">
<col width="100">
<col width="100">
</colgroup>
<tbody>
<tr>
<td style="width: 167.756px;" data-sheets-value='{"1":2,"2":"SK Investment NAV"}'>SK Investment NAV</td>
<td style="text-align: right; width: 114.545px;" data-sheets-value='{"1":2,"2":"Type"}'>Type</td>
<td style="text-align: right; width: 119.56px;" data-sheets-value='{"1":2,"2":"Stake %"}'>Stake %</td>
<td style="text-align: right; width: 111.534px;" data-sheets-value='{"1":2,"2":"Value"}'>Value</td>
<td style="text-align: right; width: 128.636px;" data-sheets-value='{"1":2,"2":"Note"}'>Note</td>
</tr>
<tr>
<td style="width: 167.756px;" data-sheets-value='{"1":2,"2":"SK Hynix Inc"}' data-sheets-formula='=googlefinance(R[0]C[1], "name")'>SK Hynix Inc</td>
<td style="text-align: right; width: 114.545px;" data-sheets-value='{"1":2,"2":"000660"}' data-sheets-formula='="000660"'>000660</td>
<td style="text-align: right; width: 119.56px;" data-sheets-value='{"1":3,"3":0.201}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}'>20.10%</td>
<td style="text-align: right; width: 111.534px;" data-sheets-value='{"1":3,"3":18510.552133672503}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0B","3":1}' data-sheets-formula='=googlefinance(R[0]C[-2], "shares")*googlefinance(R[0]C[-2], "price")/1000000000*R[0]C[-1]'><strong>₩18,510.6B</strong></td>
<td rowspan="4" style="text-align: right; width: 128.636px;" data-sheets-value='{"1":2,"2":"Market value"}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0B","3":1}'><div><strong>Market value at the current share price</strong></div></td>
</tr>
<tr>
<td style="width: 167.756px;" data-sheets-value='{"1":2,"2":"NanoenTek Inc"}' data-sheets-formula='=googlefinance(R[0]C[1], "name")'>NanoenTek Inc</td>
<td style="text-align: right; width: 114.545px;" data-sheets-value='{"1":2,"2":"039860"}' data-sheets-formula='="039860"'>039860</td>
<td style="text-align: right; width: 119.56px;" data-sheets-value='{"1":3,"3":0.284}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}'>28.40%</td>
<td style="text-align: right; width: 111.534px;" data-sheets-value='{"1":3,"3":60.1202392572}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0B","3":1}' data-sheets-formula='=googlefinance(R[0]C[-2], "shares")*googlefinance(R[0]C[-2], "price")/1000000000*R[0]C[-1]'><strong>₩60.1B</strong></td>
</tr>
<tr>
<td style="width: 167.756px;" data-sheets-value='{"1":2,"2":"Dream Us Co"}' data-sheets-formula='=googlefinance(R[0]C[1], "name")'>Dream Us Co</td>
<td style="text-align: right; width: 114.545px;" data-sheets-value='{"1":2,"2":"060570"}' data-sheets-formula='="060570"'>060570</td>
<td style="text-align: right; width: 119.56px;" data-sheets-value='{"1":3,"3":0.418}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}'>41.80%</td>
<td style="text-align: right; width: 111.534px;" data-sheets-value='{"1":3,"3":143.31751875738001}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0B","3":1}' data-sheets-formula='=googlefinance(R[0]C[-2], "shares")*googlefinance(R[0]C[-2], "price")/1000000000*R[0]C[-1]'><strong>₩143.3B</strong></td>
</tr>
<tr>
<td style="width: 167.756px;" data-sheets-value='{"1":2,"2":"Incross Co Ltd"}' data-sheets-formula='=googlefinance(R[0]C[1], "name")'>Incross Co Ltd</td>
<td style="text-align: right; width: 114.545px;" data-sheets-value='{"1":2,"2":"216050"}' data-sheets-formula='="216050"'>216050</td>
<td style="text-align: right; width: 119.56px;" data-sheets-value='{"1":3,"3":0.346}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}'>34.60%</td>
<td style="text-align: right; width: 111.534px;" data-sheets-value='{"1":3,"3":152.2054083732}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0B","3":1}' data-sheets-formula='=googlefinance(R[0]C[-2], "shares")*googlefinance(R[0]C[-2], "price")/1000000000*R[0]C[-1]'><strong>₩152.2B</strong></td>
</tr>
<tr><td colspan="5" style="width: 726.008px;"><div></div></td></tr>
<tr>
<td style="width: 167.756px;" data-sheets-value='{"1":2,"2":"11st Street"}'>11st Street</td>
<td style="text-align: right; width: 114.545px;" data-sheets-value='{"1":2,"2":"Unlisted"}'>Unlisted</td>
<td style="text-align: right; width: 119.56px;" data-sheets-value='{"1":3,"3":0.803}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}'>80.30%</td>
<td style="text-align: right; width: 111.534px;" data-sheets-value='{"1":3,"3":2208.25}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0B","3":1}' data-sheets-formula="=R[0]C[2]*R[0]C[-1]"><strong>₩2,208.3B</strong></td>
<td rowspan="5" style="text-align: right; width: 128.636px;" data-sheets-value='{"1":2,"2":"Based on the most recent private placement"}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0B","3":1}'><div><strong>Based on the most recent private placement</strong></div></td>
</tr>
<tr>
<td style="width: 167.756px;" data-sheets-value='{"1":2,"2":"T-Map Mobility"}'>T-Map Mobility</td>
<td style="text-align: right; width: 114.545px;" data-sheets-value='{"1":2,"2":"Unlisted"}'>Unlisted</td>
<td style="text-align: right; width: 119.56px;" data-sheets-value='{"1":3,"3":0.663}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}'>66.30%</td>
<td style="text-align: right; width: 111.534px;" data-sheets-value='{"1":3,"3":928.2}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0B","3":1}' data-sheets-formula="=R[0]C[2]*R[0]C[-1]"><strong>₩928.2B</strong></td>
</tr>
<tr>
<td style="width: 167.756px;" data-sheets-value='{"1":2,"2":"ADT Caps"}'>ADT Caps</td>
<td style="text-align: right; width: 114.545px;" data-sheets-value='{"1":2,"2":"Unlisted"}'>Unlisted</td>
<td style="text-align: right; width: 119.56px;" data-sheets-value='{"1":3,"3":0.626}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}'>62.60%</td>
<td style="text-align: right; width: 111.534px;" data-sheets-value='{"1":3,"3":813.8}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0B","3":1}' data-sheets-formula="=R[0]C[2]*R[0]C[-1]"><strong>₩813.8B</strong></td>
</tr>
<tr>
<td style="width: 167.756px;" data-sheets-value='{"1":2,"2":"Contents Wavve"}'>Contents Wavve</td>
<td style="text-align: right; width: 114.545px;" data-sheets-value='{"1":2,"2":"Unlisted"}'>Unlisted</td>
<td style="text-align: right; width: 119.56px;" data-sheets-value='{"1":3,"3":0.364}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}'>36.40%</td>
<td style="text-align: right; width: 111.534px;" data-sheets-value='{"1":3,"3":436.8}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0B","3":1}' data-sheets-formula="=R[0]C[2]*R[0]C[-1]"><strong>₩436.8B</strong></td>
</tr>
<tr>
<td style="width: 167.756px;" data-sheets-value='{"1":2,"2":"One Store"}'>One Store</td>
<td style="text-align: right; width: 114.545px;" data-sheets-value='{"1":2,"2":"Unlisted"}'>Unlisted</td>
<td style="text-align: right; width: 119.56px;" data-sheets-value='{"1":3,"3":0.475}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}'>47.50%</td>
<td style="text-align: right; width: 111.534px;" data-sheets-value='{"1":3,"3":427.5}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0B","3":1}' data-sheets-formula="=R[0]C[2]*R[0]C[-1]"><strong>₩427.5B</strong></td>
</tr>
<tr><td colspan="5" style="width: 726.008px;"><div></div></td></tr>
<tr>
<td style="width: 167.756px;" data-sheets-value='{"1":2,"2":"Others, including SK Planet"}'>Others, including SK Planet</td>
<td style="text-align: right; width: 114.545px;" data-sheets-value='{"1":2,"2":"Unlisted"}'>Unlisted</td>
<td style="text-align: right; width: 119.56px;" data-sheets-value='{"1":2,"2":"-"}'>-</td>
<td style="text-align: right; width: 111.534px;" data-sheets-value='{"1":3,"3":683.1}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0B","3":1}' data-sheets-formula="=60.3+100.5+94.1+5.6+17.8+404.8"><strong>₩683.1B</strong></td>
<td style="text-align: right; width: 128.636px;" data-sheets-value='{"1":2,"2":"Book value"}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0B","3":1}'><strong>Book value</strong></td>
</tr>
<tr>
<td style="width: 167.756px;" data-sheets-value='{"1":2,"2":"Net cash"}'><strong>Net cash</strong></td>
<td style="text-align: right; width: 114.545px;" data-sheets-value='{"1":2,"2":"-"}'><strong>-</strong></td>
<td style="text-align: right; width: 119.56px;" data-sheets-value='{"1":2,"2":"-"}'><strong>-</strong></td>
<td style="text-align: right; width: 111.534px;" data-sheets-value='{"1":3,"3":387.8}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0B","3":1}'><strong>₩387.8B</strong></td>
<td style="text-align: right; width: 128.636px;" data-sheets-value='{"1":2,"2":"-"}'><strong>-</strong></td>
</tr>
<tr>
<td style="width: 167.756px;" data-sheets-value='{"1":2,"2":"Total"}'>Total</td>
<td style="text-align: right; width: 114.545px;" data-sheets-value='{"1":2,"2":"-"}'>-</td>
<td style="text-align: right; width: 119.56px;" data-sheets-value='{"1":2,"2":"-"}'>-</td>
<td style="text-align: right; width: 111.534px;" data-sheets-value='{"1":3,"3":24751.64530006028}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0B","3":1}' data-sheets-formula="=sum(R[-11]C[0]:R[-1]C[0])"><strong>₩24,751.6B</strong></td>
<td style="text-align: right; width: 128.636px;" data-sheets-value='{"1":2,"2":"-"}'>-</td>
</tr>
<tr>
<td style="width: 167.756px;" data-sheets-value='{"1":2,"2":" - At a 50% discount to NAV"}'><strong>- At a 50% discount to NAV</strong></td>
<td style="text-align: right; width: 114.545px;" data-sheets-value='{"1":2,"2":"-"}'><strong>-</strong></td>
<td style="text-align: right; width: 119.56px;" data-sheets-value='{"1":2,"2":"-"}'><strong>-</strong></td>
<td style="text-align: right; width: 111.534px;" data-sheets-value='{"1":3,"3":12375.82265003014}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0B","3":1}' data-sheets-formula="=R[-1]C[0]*0.5"><strong>₩12,375.8B</strong></td>
<td style="text-align: right; width: 128.636px;" data-sheets-value='{"1":2,"2":"-"}'><strong>-</strong></td>
</tr>
<tr><td colspan="5" style="width: 726.008px;" data-sheets-value='{"1":2,"2":"Source: SK Telecom &amp; KRX"}'>Source: SK Telecom &amp; KRX</td></tr>
</tbody>
</table>

We now have the spinoff details, meaning that we can now reasonably estimate each spinoff company's valuation.SK Investment is relatively easy to estimate as it is a pure holding company without any meaningful operating operation. At the usual 50% local holding company discount to NAV, SK Investment's valuation should be slightly higher than ₩12T.









SK Investment NAV
Type
Stake %
Value
Note


SK Hynix Inc
000660
20.10%
₩18,510.6B
Market value at the current share price


NanoenTek Inc
039860
28.40%
₩60.1B


Dream Us Co
060570
41.80%
₩143.3B


Incross Co Ltd
216050
34.60%
₩152.2B



11st Street
Unlisted
80.30%
₩2,208.3B
Based on the most recent private placement


T-Map Mobility
Unlisted
66.30%
₩928.2B


ADT Caps
Unlisted
62.60%
₩813.8B


Contents Wavve
Unlisted
36.40%
₩436.8B


One Store
Unlisted
47.50%
₩427.5B



Others, including SK Planet
Unlisted
-
₩683.1B
Book value


Net cash
-
-
₩387.8B
-


Total
-
-
₩24,751.6B
-


- At a 50% discount to NAV
-
-
₩12,375.8B
-

Source: SK Telecom &amp; KRX



SK Telecom: Two Interpretations of Post-Spinoff Dividend Policy Creates a Huge Disparity

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

<p><a href="https://www.smartkarma.com/entities/sk-telecom-co-ltd-bbccd86c-474d-4a4d-946d-10e911a225a2" target="_blank" data-smartkarma-citation="entities:395:1" rel="noopener">SK Telecom (017670 KS)</a> announced the details of its reorganization plan today. SK Telecom will spin off a new investment company (tentatively named SKT Investment Co). SKT Investment will become the holding company of 16 companies including <a href="https://www.smartkarma.com/entities/sk-hynix-inc" target="_blank" data-smartkarma-citation="entities:16955:1" rel="noopener">SK Hynix (000660 KS)</a>, 11st, One Store, and T Map Mobility. According to the company, SKT Investment Co will actively pursue various M&amp;As in key sectors including semiconductor. It also plans to complete IPOs of numerous companies owned by the company. In 2021, it plans to IPO One Store. </p><p>With regards to the remaining SK Telecom, it will focus on its core telecom business as well s new technologies such as artificial intelligence, data centers, and metaverse-based services.</p><p>In this insight, we provide a detailed analysis of the expected dividend impact on the spun-off companies. </p>

SK Telecom (017670 KS) announced the details of its reorganization plan today. SK Telecom will spin off a new investment company (tentatively named SKT Investment Co). SKT Investment will become the holding company of 16 companies including SK Hynix (000660 KS), 11st, One Store, and T Map Mobility. According to the company, SKT Investment Co will actively pursue various M&amp;As in key sectors including semiconductor. It also plans to complete IPOs of numerous companies owned by the company. In 2021, it plans to IPO One Store. With regards to the remaining SK Telecom, it will focus on its core telecom business as well s new technologies such as artificial intelligence, data centers, and metaverse-based services.In this insight, we provide a detailed analysis of the expected dividend impact on the spun-off companies. 

SK Telecom: Details of Spin-Off Ratios & Expected Impact on Dividends

<p>This post details SK Telecom's spinoff announcement filed this morning. Please note that this post doesn't have an investment recommendation.</p><hr><h2>Equity spinoff</h2><p>SK Telecom held a board meeting this morning. It announced that it had decided to spin off itself into a surviving company named SK Telecom and a new company, tentatively named SKT Investment. In addition, it also announced a 5 for 1 stock split.</p><p>The spin-off ratio is 0.6073625 for the surviving company and 0.3926375 for the newly established company based on the book value of net assets. The split date is November 1. The name of the surviving company will remain SK Telecom, and the name of the new company will be finalized before the extraordinary general meeting scheduled for October 12.</p><table class="table table-striped">
<colgroup>
<col width="100">
<col width="100">
</colgroup>
<tbody>
<tr><td colspan="2" style="width: 726.008px;" data-sheets-value='{"1":2,"2":"Overview"}'>Overview</td></tr>
<tr>
<td style="width: 352.5px;" data-sheets-value='{"1":2,"2":"Name"}'>Name</td>
<td style="text-align: right; width: 352.514px;" data-sheets-value='{"1":2,"2":"SK Telecom Co Ltd"}' data-sheets-formula='=googlefinance(R[1]C[0], "name")'>SK Telecom</td>
</tr>
<tr>
<td style="width: 352.5px;" data-sheets-value='{"1":2,"2":"Ticker"}'>Ticker</td>
<td style="text-align: right; width: 352.514px;" data-sheets-value='{"1":2,"2":"017670"}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula='="017670"'>017670</td>
</tr>
<tr>
<td style="width: 352.5px;" data-sheets-value='{"1":2,"2":"Surviving"}'>Surviving</td>
<td style="text-align: right; width: 352.514px;" data-sheets-value='{"1":2,"2":"SK Telecom Co Ltd"}'>SK Telecom</td>
</tr>
<tr>
<td style="width: 352.5px;" data-sheets-value='{"1":2,"2":" - Ticker"}'>- Ticker</td>
<td style="text-align: right; width: 352.514px;" data-sheets-value='{"1":2,"2":"017670"}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=R[-2]C[0]">017670</td>
</tr>
<tr>
<td style="width: 352.5px;" data-sheets-value='{"1":2,"2":" - Bourse"}'>- Bourse</td>
<td style="text-align: right; width: 352.514px;" data-sheets-value='{"1":2,"2":"KOSPI"}'>KOSPI</td>
</tr>
<tr>
<td style="width: 352.5px;" data-sheets-value='{"1":2,"2":" - Ratio"}'><strong>- Split ratio</strong></td>
<td style="text-align: right; width: 352.514px;" data-sheets-value='{"1":3,"3":0.6073625}'><strong>0.6073625</strong></td>
</tr>
<tr>
<td style="width: 352.5px;" data-sheets-value='{"1":2,"2":" - Type"}'><strong>- Type</strong></td>
<td style="text-align: right; width: 352.514px;" data-sheets-value='{"1":2,"2":"Operating company"}'><strong>Operating company</strong></td>
</tr>
<tr>
<td style="width: 352.5px;" data-sheets-value='{"1":2,"2":" - Stock split"}'>- Stock split</td>
<td style="text-align: right; width: 352.514px;" data-sheets-value='{"1":3,"3":1}' data-sheets-numberformat='{"1":2,"2":"#,##0.0"}'>5 for 1</td>
</tr>
<tr>
<td style="width: 352.5px;" data-sheets-value='{"1":2,"2":"New"}'>New</td>
<td style="text-align: right; width: 352.514px;" data-sheets-value='{"1":2,"2":"SKT Investment"}'>SKT Investment</td>
</tr>
<tr>
<td style="width: 352.5px;" data-sheets-value='{"1":2,"2":" - Type"}'>- Type</td>
<td style="text-align: right; width: 352.514px;" data-sheets-value='{"1":2,"2":"Equity spinoff"}'>Equity spinoff</td>
</tr>
<tr>
<td style="width: 352.5px;" data-sheets-value='{"1":2,"2":" - Ticker"}'>- Ticker</td>
<td style="text-align: right; width: 352.514px;" data-sheets-value='{"1":2,"2":"TBA"}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}'>TBA</td>
</tr>
<tr>
<td style="width: 352.5px;" data-sheets-value='{"1":2,"2":" - Bourse"}'>- Bourse</td>
<td style="text-align: right; width: 352.514px;" data-sheets-value='{"1":2,"2":"KOSPI"}'>KOSPI</td>
</tr>
<tr>
<td style="width: 352.5px;" data-sheets-value='{"1":2,"2":" - Ratio"}'><strong>- Split ratio</strong></td>
<td style="text-align: right; width: 352.514px;" data-sheets-value='{"1":3,"3":0.3926375}'><strong>0.3926375</strong></td>
</tr>
<tr>
<td style="width: 352.5px;" data-sheets-value='{"1":2,"2":" - Type"}'><strong>- Type</strong></td>
<td style="text-align: right; width: 352.514px;" data-sheets-value='{"1":2,"2":"Holding company"}'><strong>Investment holding company</strong></td>
</tr>
<tr>
<td style="width: 352.5px;" data-sheets-value='{"1":2,"2":" - Stock split"}'>- Stock split</td>
<td style="text-align: right; width: 352.514px;" data-sheets-value='{"1":2,"2":"5 for 1"}' data-sheets-numberformat='{"1":2,"2":"#,##0.0"}'>5 for 1</td>
</tr>
<tr><td colspan="2" style="width: 726.008px;" data-sheets-value='{"1":2,"2":"Source: DART"}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'>Source: DART</td></tr>
</tbody>
</table><p>SK Telecom plans to hold an extraordinary general meeting of shareholders on October 12. Both companies will be listed (surviving company) and re-listed (new company) on November 29, when the stock trading suspension period ends on November 26.</p><table class="table table-striped">
<colgroup>
<col width="100">
<col width="100">
</colgroup>
<tbody>
<tr><td colspan="2" rowspan="1" data-sheets-value='{"1":2,"2":"Timetable"}' data-sheets-note="Sang Hyun Park: We have to buy shares until BOD+1 and hold onto them until the day immediately before the ex-rights date to be eligible to receive stock purchase rights. We then have to notify our dissenting opinion until the end of dissenting opinion notice period.">Timetable</td></tr>
<tr>
<td data-sheets-value='{"1":2,"2":"BOD meeting"}'>BOD meeting</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":44357}' data-sheets-numberformat='{"1":5,"2":"yyyy. m. d","3":1}'>2021. 6. 10</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Shareholder approval at EGM"}'>Shareholder approval at EGM</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":44481}' data-sheets-numberformat='{"1":5,"2":"yyyy. m. d","3":1}'>2021. 10. 12</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Trade suspension begins"}'><strong>Trade suspension begins</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":44495}' data-sheets-numberformat='{"1":5,"2":"yyyy. m. d","3":1}'><strong>2021. 10. 26</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Trade suspension ends"}'>Trade suspension ends</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":44526}' data-sheets-numberformat='{"1":5,"2":"yyyy. m. d","3":1}'>2021. 11. 26</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Re-listing"}'><strong>Re-listing</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":44529}' data-sheets-numberformat='{"1":5,"2":"yyyy. m. d","3":1}'><strong>2021. 11. 29</strong></td>
</tr>
<tr><td colspan="2" rowspan="1" data-sheets-value='{"1":2,"2":"Source: DART"}'>Source: DART</td></tr>
</tbody>
</table><h2>Stock split</h2><p>SK Telecom also proceeds with a 5 for 1 stock split at the same time. One ordinary share with a par value of ₩500 now becomes 5 shares with a par value of ₩100. As a result, the total number of issued shares will increase from the current 72,061,143 to 360,300,715. Both equity spinoff and stock split will be effective as of November 29, the listing and re-listing day.</p><hr><p>So,</p><div class="content-highlight"><p><strong>Suppose you own 20 shares of SK Telecom, you will have 100 shares, which has increased 5 times due to the stock split, and will receive 60 shares of the surviving company and 39 shares of the new company, respectively, according to a 6 to 4 split ratio. Fractional shares will be paid in cash at the closing price on November 29.</strong></p></div>

This post details SK Telecom's spinoff announcement filed this morning. Please note that this post doesn't have an investment recommendation.Equity spinoffSK Telecom held a board meeting this morning. It announced that it had decided to spin off itself into a surviving company named SK Telecom and a new company, tentatively named SKT Investment. In addition, it also announced a 5 for 1 stock split.The spin-off ratio is 0.6073625 for the surviving company and 0.3926375 for the newly established company based on the book value of net assets. The split date is November 1. The name of the surviving company will remain SK Telecom, and the name of the new company will be finalized before the extraordinary general meeting scheduled for October 12.





Overview

Name
SK Telecom


Ticker
017670


Surviving
SK Telecom


- Ticker
017670


- Bourse
KOSPI


- Split ratio
0.6073625


- Type
Operating company


- Stock split
5 for 1


New
SKT Investment


- Type
Equity spinoff


- Ticker
TBA


- Bourse
KOSPI


- Split ratio
0.3926375


- Type
Investment holding company


- Stock split
5 for 1

Source: DART

SK Telecom plans to hold an extraordinary general meeting of shareholders on October 12. Both companies will be listed (surviving company) and re-listed (new company) on November 29, when the stock trading suspension period ends on November 26.





Timetable

BOD meeting
2021. 6. 10


Shareholder approval at EGM
2021. 10. 12


Trade suspension begins
2021. 10. 26


Trade suspension ends
2021. 11. 26


Re-listing
2021. 11. 29

Source: DART

Stock splitSK Telecom also proceeds with a 5 for 1 stock split at the same time. One ordinary share with a par value of ₩500 now becomes 5 shares with a par value of ₩100. As a result, the total number of issued shares will increase from the current 72,061,143 to 360,300,715. Both equity spinoff and stock split will be effective as of November 29, the listing and re-listing day.So,Suppose you own 20 shares of SK Telecom, you will have 100 shares, which has increased 5 times due to the stock split, and will receive 60 shares of the surviving company and 39 shares of the new company, respectively, according to a 6 to 4 split ratio. Fractional shares will be paid in cash at the closing price on November 29.

SK Telecom Announcement: Split Ratio, Stock Split, Financials, Subsidiaries, & ADR Treatment

South Korea

SK Telecom Co., Ltd. is a Korean mobile and telecommunications operator. The Company provides cellular voice, wireless data, and wireless internet services. SK Telecom also offers fixed line services and platform services.

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SK Telecom (SKM US)

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