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Press Release
SK Telecom Purchases 2.48 million POSCO Shares from SK Corporation.
2003.07.22This action was designed to react proactively against any potential overhang concerns, and to maximize shareholder value through cross-holding shares with POSCO.
At a board of directors meeting on July 22nd, SK Telecom announced that the company has purchased from SK Corp., its entire 2.48 million holding of POSCO shares (2.73% of the common stock issued) for KRW332.5 billion.
The purchase price per share was KRW134,000. This was the closing price on the 22nd of July.
An SK Telecom official said that the purchase of POSCO shares was designed to react proactively against any potential overhang concerns, and to maximize shareholder value through the cross-holding of shares with POSCO.
According to SK Telecom, the company had two main reasons for purchasing the POSCO shares: The first was SK Corp.’s wish to sell off its stake in POSCO, a non-core asset, by issuing EB as a means of enhancing its financial structure. The second was the pressure POSCO has received from its investors to divest the company’s SK Telecom shares (6.8%). POSCO had previously approached SK Telecom revealing its plans to dispose of some (2%) of SK Telecom shares by means of EB issuance.
In fact, on July 22nd, POSCO’s Board of Directors approved the sale of 2% of SK Telecom’s shares by means of EB issuance. However, POSCO decided to hold the remainder (4.8%) in order to maintain the strategic alliance relationship with SK Telecom.
SK Telecom and POSCO agreed to the holding of 2.73% of POSCO shares by SK Telecom, and the holding of 4.8% of SK Telecom’s shares by POSCO.
This was done to minimize the impact of any potential overhang in the market, and to maximize shareholder value.
SK Telecom’s Board of Directors unanimously approved the purchase of POSCO shares from SK Corp. after confirming that this measure had no relationship with supporting SK affiliated companies.
SK Telecom revealed that the Company will continue to comply with the principle that there will be no support for SK affiliated companies that detracts from its own stockholders’ value.
The purchase price per share was KRW134,000. This was the closing price on the 22nd of July.
An SK Telecom official said that the purchase of POSCO shares was designed to react proactively against any potential overhang concerns, and to maximize shareholder value through the cross-holding of shares with POSCO.
According to SK Telecom, the company had two main reasons for purchasing the POSCO shares: The first was SK Corp.’s wish to sell off its stake in POSCO, a non-core asset, by issuing EB as a means of enhancing its financial structure. The second was the pressure POSCO has received from its investors to divest the company’s SK Telecom shares (6.8%). POSCO had previously approached SK Telecom revealing its plans to dispose of some (2%) of SK Telecom shares by means of EB issuance.
In fact, on July 22nd, POSCO’s Board of Directors approved the sale of 2% of SK Telecom’s shares by means of EB issuance. However, POSCO decided to hold the remainder (4.8%) in order to maintain the strategic alliance relationship with SK Telecom.
SK Telecom and POSCO agreed to the holding of 2.73% of POSCO shares by SK Telecom, and the holding of 4.8% of SK Telecom’s shares by POSCO.
This was done to minimize the impact of any potential overhang in the market, and to maximize shareholder value.
SK Telecom’s Board of Directors unanimously approved the purchase of POSCO shares from SK Corp. after confirming that this measure had no relationship with supporting SK affiliated companies.
SK Telecom revealed that the Company will continue to comply with the principle that there will be no support for SK affiliated companies that detracts from its own stockholders’ value.