sk-telecom-to-buy-business-off-affiliate-for-714-million

SK Telecom to buy business off affiliate for $714 million

As well as the leased-line assets, the Korean telecom company will also take on $503 million worth of SK Networks' debt.

SK Telecom will purchase the leased-line business of its affiliate SK Networks for W892.9 billion $714 million. The Korean telecom operator will also assume SK Networks' debt totalling W627.8 billion.

The assets the company is buying are worth W654.1 billion and comprise SK Networks' mobile telecommunication transmission network -- including switchboards, base stations and repeaters -- which will translate into greater network capacity for its mobile phone service. The deal will increase the length of SK Telecom's optical cable from just under 5,000km to 88,000km and will make its mobile network 92% self-sufficient with regards to optical cabling, up from 51% before the transaction. As a result, the company will no longer...

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