SK Telecom today announced that its fixed broadband subsidiary SK Broadband has signed a merger contract with t-broad, a subsidiary of Taekwang Industrial.
SK Telecom will become the largest shareholder in the merged entity with 74.4 percent share, followed by Taekwang Industrial with 74.4 percent share.
Moreover, the two companies have attracted an investment of around KRW 400 billion from a Financial Investor MiraeAssetDaewoo
Through the merger, SK Broadband and t-broad will become a media company with around 8 million subscribers, the company said.
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.
With this merger, SK Telecom will promote mutual growth of IPTV and cable TV, the company said in a statement.
The merged entity will officially launch upon receiving approval from the Korean Government.
SK Telecom stated that it expects the solid financial structure of t-broad to have a positive impact on its consolidated earnings.