SK C&C To Merge with SK Holdings
kpopluv, April 20, 2015, 10:01 a.m.
SK C&C Co., an IT service unit of South Korea's telecom conglomerate SK Group, said Monday it will merge with SK Holdings Co. through a stock swap deal, a move expected to increase synergy between the two and boost growth.
"Through the merger, SK C&C's ICT-based growth potential will benefit from SK Holding's resources, leading to improvement of financial health," the two companies said in a regulatory filing. "It will also make it easier to develop new promising businesses, which will also bolster our competitiveness."
The stock swap ratio has been set at one SK C&C share for 0.74 share of SK Holdings. Although SK C&C leads the deal, the merged entity will tentatively keep the name SK Holdings to maintain the identity among SK affiliates. The deal is subject to shareholders' approval on June 26, and expected to be completed on August 1.