SK Telecom Spins Off SK Horizon AI Unit
SK Telecom said on Aug. 27 that it will pursue a vertical split of its wholly owned subsidiary SK Broadband into the surviving company SK Broadband and the newly established company SK Horizon.Based on the book value of net assets, the split ratio is about 0.84 for SK Broadband and about 0.16 for SK
On August 27, SK Telecom announced plans to split its wholly owned subsidiary SK Broadband into two separate entities: SK Broadband and SK Horizon. This split, based on the book value of net assets, would see SK Broadband retaining 84% of the combined assets, while SK Horizon would acquire 16%. The company aims to finalize the split and establish SK Horizon in the first quarter of the following year, navigating through government approvals, permits, and an extraordinary general meeting of shareholders.
SK Horizon will oversee the AI data center infrastructure business, while SK Broadband will focus on fixed-line, media, and enterprise businesses. The new company plans to expand its infrastructure, including AI data centers, by a total of 318 MW, with eight data centers already operational in Seocho, Ilsan, Bundang, Gasan, Centum, Yangju, and Pangyo, and additional centers under construction in Ulsan and Guro.
Moreover, SK Horizon intends to gradually expand the construction of submarine cables necessary for its global AI business.
The split is supported by external investment of 3.08 trillion won ($2.31 billion), with global investment firm KKR and the IMM Investment-Stonebridge consortium participating. This investment will be utilized for further AI data center expansion and the development of related infrastructure. Upon the investment's completion in phases, SK Telecom will maintain a 51% stake in SK Horizon, with KKR holding 29% and the IMM consortium 20%.
The investment funds will be allocated towards expanding SK Horizon's AI data center capabilities and infrastructure development.
In this restructuring, SK Telecom's AI data center business will divide responsibilities between SK Horizon and SK Hyper, established in July. SK Telecom will oversee the group's AI data center strategy and cooperation with global tech giants, while SK Horizon will manage existing data center operations and infrastructure expansion, including AI data centers and submarine cables. SK Hyper's plan is to build up capacity in phases, reaching 5 GW by 2029 and expanding to 15 GW by 2035.
SK Broadband, the surviving entity, will concentrate on its fixed-line, media, and enterprise businesses. The company plans to enhance the competitiveness of its AI-based products and services while exploring new business models. SK Broadband's CEO, Kim Sung-soo, stated, "The governance reorganization serves as a proactive measure to secure expertise in the AI data center business and bolster rapid execution capabilities."
He further added, "We will continue to expand SK Horizon and grow it into the nation's leading data center operator."
Written by urgent.news from BusinessKorea's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
