SK Networks divests SK Telecom stake

Morgan Stanley completes an unusual ADR trade.

SK Networks, formerly SK Global, has sold a 1.3% stake in SK Telecom, Korea's largest listed company, with a market capitalization of $13 billion. However, the deal, which was completed after Korea's close yesterday Wednesday, will not become fungible with the outstanding ADR float for 40 days.

This is because the Morgan Stanley-led transaction was completed in Reg S format. As SK Networks is an affiliate company of SK Telecom, a 144a deal would have necessitated a full regulatory filing with the US SEC.

The group raised $184 million from the offering, which comprised 9.65 million ADR units. The sale was completed at $19.05, which...

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